HK Financial Services Market Recap for Week Ending 2/22/19

Top of the morning: Stocks are higher pre-market. As of 7:45 CST this morning, the Dow is up about 160 points and the S&P 500 is up 0.5%. Bond yields are close to where we started the year, with the 2-year Treasury at 2.51% and the 10-year at 2.68%. China local stocks (Shanghai) are up over 5.5%, presumably on optimism that a trade deal will be reached.

 Overview: Global stock markets advanced following a week of productive high-level trade talks between the U.S. and China. Non-U.S. stocks led the way with emerging markets (MSCI EM) up 2.8% and international developed (MSCI EAFE) up 1.7%. Domestically, the S&P 500 gained 0.7% for the week. Easing trade tensions, rising equity markets and hopes for production cuts lifted oil prices to 2019 highs last week. WTI crude oil finished the week up 3.6% at $57.26 per barrel and is now up about 20% for the year-to-date.

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Provided by Ivan Gruhl, Chief Investment Officer, HK Financial Services. Sources:  Bloomberg, Pac Global, Goldman Sachs Asset Management (data). Investment advisory services offered through HK Financial Services (HKFS), an Independent Registered Investment Advisor. Commission-based securities products are sold by ProEquities registered representatives and offered through ProEquities, Inc., a Registered Broker-Dealer and member of FINRA and SIPC. Insurance products issued by many highly rated carriers. HKFS, ProEquities and Boyum Barenscheer, PLLP are independent of each other.

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