John Hancock: Weekly Market Recap Week Ended September 8th
Crude awakening
The price of U.S. crude oil rose on Friday to the highest level since last November, eclipsing $87 per barrel. The price has climbed nearly 10% over the past two weeks amid renewed oil supply concerns, adding to inflationary pressures across the broad economy.
2-year yields rise
Concerns about the potential for further interest-rate increases in coming months weighed on prices of 2-year U.S. Treasury bonds. The price decline sent the 2-year note’s closing yield higher to 5.01% on Wednesday, just shy of its year-to-date peak of 5.05% reached in early March. Friday’s closing yield was 4.97%.
China’s trade slump
China’s government reported another monthly decline in both its exports and its imports. In U.S. dollar terms, China’s exports fell 8.8% in August from the same month a year earlier; imports fell 7.3% and have dropped each month so far in 2023.
Price check ahead
A Consumer Price Index report scheduled to be released on Wednesday will show whether the recent moderation in inflation extended into August. The most recent CPI report for July showed that annual inflation rose slightly to 3.2% from 3.0% the previous month. However, excluding volatile energy and food costs, core inflation slipped to 4.7% from the prior month’s 4.8%.
Source: https://www.jhinvestments.com/weekly-market-recap