“The only thing certain about any negotiation is that it will lead to another negotiation” – Leigh Steinberg
Markets Move Upward on “Phase One” Trade Deal Announcement
This week, the United States and China came to an agreement on the first portion of a trade deal between the two nations. The so-called “Phase One” deal lays the groundwork to begin work toward the “Phase Two” deal. While the announcement of the Phase One agreement is positive, it should be noted that more heavy lifting is required as the trade war is not yet over. It is still possible that Phase Two will not be completed prior to the U.S. Presidential Election this coming November.
The Phase Two talks are expected to be centered around more contentious subjects, such as Chinese structural economic reform.
Markets reacted positively to news of the agreement. The Dow Jones Industrial Average is within striking distance of the 30,000 mark, which would be the first time 30,000 has been hit by the Dow. The S&P 500 and Nasdaq also rose on the news. The Toronto S&P/TSX Composite, most of Western Europe, and Japan, to name a few worldwide indexes, were also positive movers.
Weekly Update – By The Numbers
| North America | Friday Close | Weekly Change | Weekly % Change | YTD % Change |
| Canada – S&P TSX Composite | 17,559 | 325 | 1.89% | 2.91% |
| USA – Dow Jones Industrial Average | 29,348 | 524 | 1.82% | 2.84% |
| USA – S&P 500 | 3,330 | 65 | 1.99% | 3.06% |
| USA – NASDAQ | 9,389 | 210 | 2.29% | 4.64% |
| Gold Futures (USD) | $1,556.70 | -$5.30 | -0.34% | 2.41% |
| Crude Oil Futures (USD) | $58.72 | -$0.42 | -0.71% | -4.07% |
| CAD/USD Exchange Rate | € 0.7649 | -€ 0.0005 | -0.07% | -0.66% |
| Europe / Asia | Friday Close | Weekly Change | Weekly % Change | YTD % Change |
| MSCI World Index | 2,416 | 38 | 1.60% | 2.46% |
| Switzerland – Euro Stoxx 50 | 3,808 | 18 | 0.47% | 1.60% |
| England – FTSE 100 | 7,675 | 87 | 1.15% | 1.57% |
| France – CAC 40 | 6,101 | 64 | 1.06% | 2.06% |
| Germany – DAX Performance Index | 13,526 | 43 | 0.32% | 2.09% |
| Japan – Nikkei 225 | 24,041 | 190 | 0.80% | 1.62% |
| China – Shanghai Composite Index | 3,076 | -16 | -0.52% | 0.85% |
| CAD/EURO Exchange Rate | € 0.6895 | € 0.0011 | 0.16% | 0.45% |
| Fixed Income | Friday Close | Weekly Change | Weekly % Change | YTD % Change |
| 10-Year Bond Yield (in %) | 1.8360 | 0.0110 | 0.60% | -4.33% |
Sources: Dynamic, Yahoo Finance, CNBC.com, Advisor.ca
This information is provided for general information purposes only. It does not constitute professional advice. Please contact a professional about your specific needs before taking any action.