The PCE Index, or the primary inflation indicator of the Federal Reserve, posted a nominally lower reading than expected, a print that assuaged some worries about inflation.
Equities trimmed some of their weekly losses and Treasuries rallied nominally across the curve.
Historically Christmas week is a positive week for all markets, albeit on low volume given the dearth of participants.
The global economies, the geopolitical backdrop has radically changed where perhaps yesterday’s rules or benchmarks are no longer valid,
We live in an incredible country, a country that has overcome insurmountable odds. Change is the only certainty and tomorrow will be better than yesterday ever was.
Against the above backdrop, I would like to wish all a Merry Christmas and Happy Holidays.
Last night the foreign markets were up. London was up 0.27%, Paris up 0.18% and Frankfurt 0.01%. China was down 0.50%, Japan up 1.19% and Hang Seng up 0.82%.
Futures are mixed in trading that is expected to be subdued. The 10-year is off 7/32 to yield 4.55%.
Kent Engelke
Chief Economic Strategist Managing Director
The views expressed herein are those of Kent Engelke and do not necessarily reflect those of Capitol Securities Management. Any opinions expressed are statements of judgment on this date and are subject to certain risks and uncertainties which could cause actual results to differ materially from those currently anticipated or projected. Any future dividends, interest, yields and event dates listed may be subject to change. An investor cannot invest in an index, and its returns are not indicative of the performance of any specific investment. Past performance is not indicative of future results. This material is being provided for informational purposes only. Any information should not be deemed a recommendation to buy, hold or sell any security. Certain information has been obtained from third-party sources we consider reliable, but we do not guarantee that such information is accurate or complete. This report is not a complete description of the securities, markets, or developments referred to in this material and does not include all available data necessary for making an investment decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. Investing involves risk and you may incur a profit or loss regardless of strategy selected. There is no guarantee that the statements, opinions or forecasts provided herein will prove to be correct. If you would like to unsubscribe from this e-mail distribution, please reply to this e-mail and indicate that you wish to unsubscribe in your response.
