Insights / Blogs

Insights / Blogs

October 02, 2015

This Week in Review: Weaker US Payrolls Add to Global Worries

For the week ended 2 October 2015
  • US adds just 142,000 jobs in September
  • US manufacturing growth slows
  • China’s manufacturing softens
  • Eurozone prices drop, confidence still strong
  • Debt doubts haunt Glencore
A disappointing monthly jobs report indicated surprising softness in the US economy, adding to concerns about global weakness. Stocks tumbled and gold futures jumped on the news, while the 10-year US Treasury yield fell to 1.90% before rebounding.

September 25, 2015

This Week in Review: Markets Encouraged by Yellen’s Speech

For the week ended 25 September 2015

 Q2 US GDP revised up to 3.9%
• China’s manufacturing contracts further
• Japan on edge of deflation again
• Eurozone September growth slows only slightly
• France’s debt rating cut

Stocks rebounded Friday after US Federal Reserve Chair Janet Yellen signaled that rates would likely rise this year and second-quarter US GDP was revised upward to 3.9%. Nevertheless, major global stock indices lost ground for the week as Asian economic reports indicated further weakness. Eurozone data were more upbeat.

September 23, 2015

Standing Firm on a Strong DC Core

Ryan Mullen, MFS Senior Managing Director, Head of Defined Contribution Investments
Sometimes when the going gets tough, the tough are better off staying put — as long as they're standing on solid ground. With the market volatility we've seen lately, that's an important reminder for DC plan sponsors, advisors and participants. But staying the course with an investment strategy is only half the battle when markets are volatile. The plan's investments must also be managed to navigate choppier conditions effectively. 

September 18, 2015

This Week in Review: Market Action Reflects Fed's Concerns

For the week ended 18 September 2015
  • Fed keeps target rate at zero bound
  • US economy exhibits strength
  • China's industrial output misses target
  • Japan's debt rating cut by S&P
  • Eurozone trade, production advance

Global stocks generally gave back this week's gains Friday. US indices had climbed steadily on strengthening US economic data. However, the US Federal Reserve's decision Thursday to leave interest rates unchanged was attributed to concern about global weakness. That led to a wide-scale selloff in stocks and a rally in US Treasuries, German bunds and gold. The yield on the 10-year US Treasury note fell to 2.16% Friday from 2.29% before the Fed's policy announcement.

September 11, 2015

This Week in Review: Equities Stay Choppy on China and Fed Rate Watch

For the week ended 11 September 2015
  • China posts weak trade data
  • Japan to cut corporate taxes next year
  • Eurozone GDP picks up
  • Brazil credit rating cut to junk
  • US job openings up, consumer sentiment down

Major global equity market indices were volatile, but gained for the week even as investors remained nervous about China's slowing economy ahead of a much-anticipated US Federal Reserve policy meeting next week. The VIX index traded in a fairly tight band of 23–27, indicating slightly less US stock market turbulence than in prior weeks. The yield on the 10-year US Treasury note varied between 2.13% and 2.24%, ending the week in the middle of that range. US West Texas Intermediate crude oil futures hovered under $46 per barrel this week, while Brent crude oil fell below $48 per barrel and gold dipped below $1,100 an ounce Friday, near its low for the year.