In this series, we’ll take a look at the performances of the US Consumer Confidence Index in April and the US GDP in 1Q17.
The Energy Select Sector SPDR ETF (XLE), which tracks the performance of the energy sector, had a poor performance in April 2017.
The Health Care Select Sector SPDR ETF (XLV), which tracks the performance of the healthcare sector, saw an improved performance in April 2017.
The Technology Select Sector SPDR ETF (XLK), which tracks the performance of the technology sector, showed a strong performance in April 2017 with returns of nearly 2.1% in April 2017.
The Materials Select Sector SPDR ETF (XLB), which tracks the performance of the material sector, showed an improved performance in April 2017.
The financial sector fell nearly 0.63% in April. Major financial stocks JP Morgan (JPM), Bank of America (BAC), and Citigroup (C) returned nearly -0.6%, -1%, and 0.93%, respectively, during the month.
As the earnings growth is showing improvement, we could expect that the equity market might also show some further improvement.
The S&P 500 Index (SPY) (QQQ) showed marginal improvement in April 2017 as compared to March 2017.
The Mexican peso recently climbed in value after the Trump administration said that it would not exit NAFTA altogether.
Markets seem to have overcome Trump’s anti-trade rhetoric by this point in 2017, given the lost confidence in Trump’s ability to implement his promises.
Mexico recorded a modest trade deficit in March 2017, as compared to its trade surplus in the previous month.
Mexico’s finance ministry recently said that it expects the nation’s economy to grow between 1.3%–2.3% in 2017 and then to increase to 2.0%–3.0% in 2018.
Argentina’s inflation has been surging for a couple of years, spiking to around 40.0% in 2016 compared to 10.0% between 2007 and 2009.
The recent rally in Argentina’s Merval Index (ARGT) reflects improved access to Argentina’s markets with a host of reforms adopted by President Mauricio Macri.
With the new government under the leadership of President Mauricio Macri, Argentina seems to be doing much better.
The economic situation in Argentina was in disarray with high inflation, fiscal deficit, and a host of other issues. Then a new president was elected in December 2015.
According to Fink, the Trump administration should also focus on training and developing human resources to have a greater impact on expected reforms.
Fink believes that with a Le Pen win, the possibility of a French referendum to exit the European Union would be much more likely than anticipated.
Uncertainty about the implementation of reforms by the Trump administration seems to be overshadowing the markets.
The Trump administration has been trying to repatriate the $2.6 trillion in overseas profits held abroad by US companies to avoid taxes.