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News and Insights » UMAFS Market Review Week Ending 10/7/2016

UMAFS Market Week in Review - ending October 7, 2016

Last week’s labor report highlighted 3 key components within the U. S. economy. First, we added another 156,000 new jobs during the month of September. Second, wage growth continued to increase. Third, signs of some inflation pressures are still present. These numbers continue to demonstrate the strength of the U.S. economy. Additionally, the Institute of Supply Management (ISM) also released some strong data this past week, indicating that both the manufacturing and non-manufacturing sectors of our economy are healthy and doing well. On the heels of these economic numbers, most continue to believe that the Fed will hold rates steady through their November meeting (and the U.S. election) and instead wait until their December meeting to initiate the next rate increase.

The U.K. markets again found their way back into last week’s headlines after a rather quiet past couple of months. Conversations and questions surrounding the Brexit transition again entered back into the overseas markets, causing the British Pound to fall in value. Theresa May, the UK Prime Minister, indicated that formal European Union (E.U.) separation negotiations will begin in March 2017. At which point, Britain and the E.U. will have many areas to negotiate including future terms of immigration as well as the scope of access to each other’s markets.  

On the economic front for the week ahead, mortgage applications and jobless claims will be released during the mid to latter part of the week. On Friday, Federal Reserve Chairman Janet Yellen will give the luncheon keynote address at the Boston Fed's 60th Economic Conference, "The Elusive Recovery." During her address, many will be looking for any potential hints as to the potential timing and quantity of the next rate hike.

October 13th, 2016 @ 7:47am by UMAFS
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