John Hancock: Weekly Market Recap Week Ended May 17th

Shifting rate outlook

The latest inflation data lifted investors’ expectations for interest-rate cuts later this year, and government bond yields fell sharply, with most of the week’s decline coming in response to Wednesday’s better-than-expected inflation report. The yield of the 10-year U.S. Treasury bond closed at 4.42% on Friday, down sharply from 4.69% at the end of April. 

China’s property stimulus

Amid slumping housing prices, China on Friday announced measures designed to lift the struggling commercial and residential property markets in the world’s second-largest economy. Among other things, China’s central bank reduced the minimum down payment for mortgages and removed the floor on interest rates for first and second homes.

Gold’s glitter

The price of gold futures on Friday climbed above the record-high $2,400-per-ounce level last reached in mid-April. Year to date, gold has risen nearly 17%, with most of the gain coming since mid-March. 

Retail flattens 

U.S. retail sales were unexpectedly flat in April, marking a slowdown from the previous month, when sales climbed 0.6%. Most economists had been expecting an April sales gain of around 0.4%, rather than the unchanged result, which came amid elevated interest rates and persistent inflation.  

Source: https://wmr.jhinvestments.com/