U.S. economic data was positive across the board last week. We saw better-than-expected results in key areas of the economy, including:
+ first quarter GDP
+ new and existing home sales
+ consumer confidence and consumer sentiment
+ manufacturing PMI
+ durable goods orders
+ wholesale inventories
+ initial jobless claims
Internationally, economic data was mixed. Japanese industrial production was much better than expected, but Eurozone manufacturing PMI and UK GDP growth disappointed.
In the U.S. equity market, interest rate-sensitive sectors such as REITs and utilities outperformed for the week as investors anticipated a softening of interest rates. Industrial stocks were the worst performers for the week: Aerospace and defense fell the most as global tensions eased following the meeting of North and South Korean leaders.
Related: Financials Shine as Bond Prices Fall
Overseas, interest rate-sensitive real estate stocks outperformed on expectations for lower interest rates. European equities (especially financials) underperformed, also due to interest-rate expectations.