Another mixed week on the global economic front. On the positive side in the U.S., wholesale inventories, initial jobless claims and the University of Michigan’s consumer sentiment index were better than expected. However, two measures of inflation—the consumer price index and the producer price index—disappointed.
Overseas, we saw positive developments in: Brazilian retail sales; industrial production in Italy, Mexico and Germany; and manufacturing production in the UK. But industrial production in India and France, as well as factory orders in Germany, were below expectations.
The U.S. equity market saw shares of energy companies benefiting from rising oil prices. Healthcare companies also outperformed as President Trump clarified his position on addressing prescription drug prices. However, interest-rate sensitive sectors such as utilities underperformed as rates rose for the week.
Internationally, emerging markets–especially those in Asia—outperformed, as tensions eased on the Korean Peninsula and trade tensions with China moderated. European equities underperformed due to uncertainties surrounding economic growth and future central bank actions.