Market Briefing: News Events & Key Markets August 5, 2017 Dr. Edward Yardeni 516-972-7683 eyardeni@ Debbie Johnson 480-664-1333 djohnson@ Mali Quintana 480-664-1333 aquintana@ Please visit our sites at www. blog. thinking outside the box
Table Of Contents Table Of Contents News Events & Key Markets 1-5 August 5, 2017 / News Events & Key Markets www.
135 130 125 120 Figure 1. News Events & Key Markets JP MORGAN TRADE-WEIGHTED DOLLAR INDEX* (2000=100, daily) 135 130 125 120 115 115 110 105 100 110 105 100 95 95 90 90 * Argentina, Australia, Brazil, Bulgaria, Canada, Chile, China, Colombia, Croatia, Czech Rep., Denmark, Ecuador, Egypt, Hong Kong, Hungary, India, Indonesia, Israel, Japan, Korea, Kuwait, Malaysia, Mexico, Morocco, New Zealand, Nigeria, Norway, Pakistan, Panama, Peru, Philippines, Poland, Romania, Russia, Saudi Arabia, Singapore, South Africa, Sweden, Switzerland, Taiwan, Thailand, Turkey, Ukraine, UK, Uruguay, US, Venezuela, Vietnam, & Euro Area. Source: JP Morgan. 4.5 4.0 3.5 Figure 2. US TREASURY 10-YEAR BOND YIELD (percent) 4.5 4.0 3.5 3.0 3.0 2.5 2.5 2.0 2.0 1.5 1.5 1.0 Source: Federal Reserve Board. 1.0 Page 1 / August 5, 2017 / News Events & Key Markets www.
News Events & Key Markets 2800 2600 2400 2200 Figure 3. S&P 500 INDEX 2800 2600 2400 2200 2000 1800 2000 1800 1400 1400 1200 Source: Standard & Poor s. 1200 5.5 5.0 4.5 4.0 Figure 4. COPPER CASH PRICE ($/LB) 5.5 5.0 4.5 4.0 3.5 3.5 3.0 3.0 2.5 2.5 2.0 2.0 1.5 Source: Haver Analytics. 1.5 Page 2 / August 5, 2017 / News Events & Key Markets www.
2200 Figure 5. GOLD PRICE (US$/Troy ounce) News Events & Key Markets 2200 2000 1800 2000 1800 1400 1400 1200 1200 Source: Haver Analytics. 2050 1975 Figure 6. GOLD CASH PRICE D (dollars per troy ounce) A 2050 1975 1900 1900 1825 1825 1750 1750 1675 1675 1525 1525 1450 1450 1375 1375 1300 1225 1150 1075 D = On July 26, 2012, ECB President Mario Draghi pledged to do "whatever it takes" to defend the euro. A = On April 4, 2013, Bank of Japan implemented "Abenomics" monetary policy. Source: Wall Street Journal and Haver Analytics. 1300 1225 1150 1075 Page 3 / August 5, 2017 / News Events & Key Markets www.
News Events & Key Markets 1.60 Figure 7. EUROZONE: US$/EURO 1.60 D NIRP E 1.45 1.45 1.30 1.30 1.15 1.15 1.00 1.00 D = ECB President Mario Draghi pledged to do "whatever it takes" to defend the euro (7/26/12). NIRP = negative interest-rate policy (6/5/2014). (1/22/15). E = expansion and extension of (3/10/16, corporate bond purchases started 6/1/16). Source: Haver Analytics. 1.4 1.3 Figure 8. JAPAN: US$/100YEN (daily) A Q QE NIRP 1.4 1.3 1.2 1.2 1.1 YC 1.1 1.0 1.0.9.9.8.8.7.7 Note: A = Markets start to anticipate Abenomics. Q is Quantitative and Qualitative Easing. QE is the expanded and extended version of Q. NIRP = negative interest rates. YC = Yield curve targeting. Source: Haver Analytics. Page 4 / August 5, 2017 / News Events & Key Markets www.
News Events & Key Markets 450 400 Figure 9. YIELD CURVE (basis points) 450 400 350 300 350 300 250 250 200 200 150 150 100 8/3 100 50 50 * US Treasury 10-year bond yield less federal funds rate. Source: Federal Reserve Board. Figure 10. YIELD SPREAD: US HIGH-YIELD CORPORATE LESS US TREASURY 10-YEAR BOND (basis points) 800 800 600 600 400 400 8/3 200 Source: Federal Reserve Board. 200 Page 5 / August 5, 2017 / News Events & Key Markets www.
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