John Hancock: Weekly Market Recap Week Ended September 13th
Consumer comeback
A pair of economic reports released on Friday indicated that U.S. consumer confidence has recovered somewhat from a recent slump. Monthly retail sales exceeded most economists’ expectations and the University of Michigan’s monthly consumer confidence index recorded a sharp gain.
Anxiety eases
The U.S. stock market’s near recovery from August’s decline has been accompanied by a steep drop in a gauge of investors’ expectations for short-term market volatility. The Cboe Volatility Index has dropped more than 40% from a recent high on August 5.
Goodwill gestures
Concessions by China and the United States fueled hopes that the trade rivals could reach an interim agreement when high-level negotiations resume in early October. China waived tariffs on some U.S. agricultural goods, including soybeans and pork, while the United States delayed the implementation of new tariffs by two weeks.
Fed ahead
The U.S. Federal Reserve is expected to cut interest rates for the second time in two months when it concludes a two-day meeting on Wednesday. Most observers expect the Fed will approve a cut of a quarter of a percentage point in hopes of maintaining solid U.S. economic growth in the face of a potential global slowdown.