The Russell 2000 Index is a subset of the Russell 3000® Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership. On the data front, personal spending is expected to have increased 0.5% in April, Weekly Fixed Income Review slowing from March’s stimulus-fueled 4.2% gain. Meanwhile, personal income is forecasted to have fallen 14.2% during the month after jumping 21.1% during the previous period. Also in focus, the core PCE deflator (the Fed’s preferred proxy for inflation) is estimated to have spiked 2.9% year-over-year in April, well above March’s 1.8% advance.

UK public sector net borrowing, excluding public sector banks, was estimated at £31.7bn in April, which was the second-highest amount for that month’s borrowing since records began in 1993. However, it came in below the Office for Forex Trading For Dummies By Optionrally Budget Responsibility’s £39bn estimate and last April’s £15.6bn . Although public borrowing for the fiscal year ending in March 2021 was revised down by £2.8bn to £300.3bn, it remained the highest since the second world war.

Market Insights

Jim Caron, Portfolio Manager and Head of Global Macro Strategies, provides a timely insight on the fixed income markets today. Jim Caron, Portfolio Manager and Head of Global Macro Strategies, provides timely insights on what’s driving fixed income markets today. Jim Caron, Portfolio Manager and Head of Global Macro Strategies, provides a 60 second overview of the factors impacting fixed income markets in 2021. 2020 was characterised by a renewed focus on sustainability both among investors and issuers. The Sustainable Fixed Income team highlights five areas of focus for sustainable investing for Fixed Income in the year ahead.

During the week, the 10-year German bund yield rose to a near two-year high of-0.19% while Italy’s 10-year benchmark bond yield rose to its highest level since late September. An immersive experience on fixed income markets, our interactive data visualization draws from deep cuts of data in both issuance and outstanding securities. ​In his capacity as Managing Director / Executive Director, Teng manages the overall business and strategic direction as well as the management of the investment team. His hands-on approach sees him actively involved in investments, product development and marketing.

Emerging Markets Should Largely Keep Pace With U S. Rebound

Some Fed officials have begun to argue for a reduction in bond purchasing in the future if the economy continues to improve. However, the majority view is that the recent rise in inflation is temporary and that employment across the country needs to improve substantially before a change in monetary policy can be considered. The 10-year US Treasury yield rose back above 1.65% before gently declining at the Stock Price Quote And Latest News end of the week. The US dollar index recovered slightly at the end of the week, having traded down to a four-month low. The dollar continued to decline, which was due in part to previous dovish soundings from Fed officials. Bank of England governor Andrew Bailey, in an annual report to parliament’s Treasury Committee, said that he did not see inflationary pressures building over the medium-to-long term.

First Republic Investment Management, an SEC Registered Investment Advisor, offers objective, individualized wealth management solutions. Our seasoned bankers tap their specialized industry knowledge to craft customized solutions that meet the financial needs of your business. Access your MFS mutual fund, IRA, 529 savings plan accounts, quaterly statements, and sign up for eDelivery. As of May 12, 2021, of the 456 S&P 500 Index companies reporting first-quarter earnings, 386 beat analysts’ expectations, according to S&P Dow Jones Indices.

Economic Updates

The value of investments may go down as well as up and investors may not get back the full amount invested. Choosing the right asset classes for your portfolio can be difficult. Weekly Equity Market CommentaryBull sentiment weakens, but bears remain M.I.A. Results were mixed for global equities as broad-based U.S. indexes fell modestly, while the MSCI’s EAFE, Emerging Markets and ACWI ex-USA all gained over 1%.

Corporate earnings blew away expectations this quarter, with an average upside surprise of 22%. There are a number of reasons estimates were off, and we have five key takeaways from this earnings season. In Part 1 of a two-part election preview series, we look at the potential market impact if former Vice President Joe Biden is elected president, including what to expect in taxes, regulation, initiatives, and governance. Why have stocks done so well in such a challenging economic environment and with COVID-19 still an ongoing threat? We likely had the shortest recession ever and began a new economic expansion.

Bond Market Commentary And Analysis

The MSCI Europe, Australasia, and Far East Index tracks the performance of publicly traded large- and mid-cap stocks of companies in those regions. The Cboe Volatility Index shows the market’s expectation of 30-day volatility and is constructed using the implied volatilities Weekly Fixed Income Review of a wide range of S&P 500 Index options. Weekly and year-to-date figures for the VIX show percentage changes, not investment returns. The Russell 2000 Index tracks the performance of approximately 2,000 publicly traded small-cap companies in the United States.

Andrew Harmstone and his team discuss what this means for their portfolios. US equities are expensive, but valuations do not yet appear extreme enough to qualify as a bubble, given strong earnings growth and current low interest rates. With ample fiscal support and liquidity, we see limited downside risk in the short term. U.S. high yield mutual funds reported outflows of $978M last week, bringing the YTD outflow to $11.2B. Meanwhile, the primary market remained active, with $12.7B of issuance across 20 deals.

Global Markets

Such information has been obtained from various sources including those in the public domain, are merely expressions of belief. Portfolio action wise, we were net buyers over the past week; focusing on short- to medium-tenured corporate names that we are comfortable with for additional yield pickup. This week, BPMB is expected to issue RM1.0 billion worth of bonds, while Bank Muamalat and Bank Rakyat are expected to offer their sub-debt in early June 2021 to refinance their upcoming maturities. In terms of portfolio action, not many changes were made to our global / regional funds as we are comfortable with our existing positions.

High yield municipal market performance continues to be strong, as high yields outpace investment grade municipals and high-quality taxable fixed income. This week we expect an unusually large senior living facility deal. The sector has been the driver of monetary defaults over the last 18 months.

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While few of us speculate on commodity futures, the price of oil is an important variable. We explain what happened and where oil prices could be headed ultimately. Stocks tend to lead the economy, and they’ve had a historic run recently.

Posted by: Coryanne Hicks