Pennsylvania Trust

Global Equity Markets Advance The Most In 4 Months

Global Equity Markets Advance The Most In 4 Months

Sparked by China’s renewed commitment to stimulus and continued momentum on trade, global stocks capped a five-day rally with their best week in almost four months. The MSCI World Index climbed 2.8 percent, its strongest weekly run since Nov. 30, erasing last week’s losses. The S&P continued to outpace global stocks (up 3 percent on week) while the Dow gained 1.6 percent despite aerospace giant Boeing losing more than 10% in the wake of the Ethiopian Airline crash.

This week, investor attention will turn to a packed calendar in the days ahead with the U.S. and U.K Central Banks scheduled to meet.

While recent economic news in the U.S. has not been particularly optimistic, policy makers will likely stress patience and data dependence while not sounding overly pessimistic as first quarter has been seasonally slower for the past few years.  Across the pond, the Bank of England faces muddied waters as any hope officials had of escaping from the BREXIT saga were dashed by the Parliament this past week.  While the BOE view remains that hikes are needed in the coming years, this week will not be the time to do so.

Disclosure: This Commentary represents a review of topics of possible interest to Pennsylvania Trust’s clients and is not personalized investment advice. It contains Pennsylvania Trust’s opinions, which may change following the date of publication. Information obtained from third-party sources is assumed to be reliable but is not guaranteed. No outcome – including performance – is guaranteed, due to various uncertainties and risks. This document is not a recommendation of any particular investment. Investment decisions for clients are made on an individualized basis and may be different from what is expressed here. Past performance is no guarantee of future results.