Overview: Stock markets declined last week, posting their worst week of performance this year. The S&P 500, the MSCI international, and the MSCI EM markets all lost about 2% for the week. Three main catalysts drove the trade. First, there were no new developments in U.S.-China trade, with no official schedule for future talks. Second, weaker economic signals from Europe and China were in the news, with the ECB revising growth downward for the Euro bloc, and China reporting a surprising 20% decline in exports for the month of February. Finally, a disappointing jobs report showed the economy added only 20,000 jobs, vs. an expectation of 180,000. On the positive side, productivity rose 1.9% in the fourth quarter, the highest level since 2010; with productivity considered a key for continued economic expansion.

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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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