On Monday, Congress passed a three-week spending bill to end the government shutdown that kicked off late last week. Immigration debate was a central topic between Democrats and Republicans, and the next three weeks will likely see continued debate on this front.
Jerome Powell, who has been a member of the Federal Reserve Board of Governors since 2012, was confirmed as Janet Yellen’s successor as chairman of the Fed. Yellen’s term ends Feb. 3. It is widely expected that Powell will maintain the economic strategy that Yellen has been operating under during her four-year tenure.
The U.S. dollar has continued to weaken relative to many foreign currencies in 2018, providing a boost to any international stock holdings held by investors. Netflix (NFLX) reported a strong quarter, based on stronger-than-expected subscriber growth, particularly abroad. The stock price rose significantly on the back of this news.
Weekly Returns:
S&P 500: 2,872.87 (+2.22%)
FTSE All-World ex-US: 58.89 (1.9%)
US 10 Year Treasury Yield: 2.66% (+.0%)
Gold: $1,350.32 (+1.3%)
EUR/USD: $1.2427 (+1.6%)
Major Events:
Our Take:
With only three weeks until a new federal government budgetary crisis, Democrats and Republicans will have a short span to work through their differences without providing further interruption in services to taxpayers.
