Market and Economic News from LPL Financial Research Team
Week of July 17, 2017
MARKET COMMENTARY; This weekly update offers insights into domestic and global financial markets events, policy actions, and geopolitical impacts.
- Overseas markets generally had strong earnings last quarter, with energy companies providing the biggest boost.
- Future expectations are high once again for energy companies, but also for consumer and financial companies.
- Structural changes may be happening in France that could positively impact the environment for corporate profitability.
ECONOMIC COMMENTARY; This weekly update offers insights into the U.S. and global economy.
- Consensus expectations continue to see global growth accelerating in 2017 and 2018.
- Global growth expectations have risen over the course of the year supported by strong growth outside the U.S.
- Expectations for second half growth have held steady, but economic surprises and leading indicators are showing a neutral bias compared to a positive bias in the first quarter.
BOND MARKET PERSPECTIVES; This weekly update offers insights into major news and themes driving fixed income markets.
- Following a two-year political struggle that led to a credit rating downgrade, Illinois recently enacted a budget, temporarily easing financial stress.
- Despite operating without a state budget since mid-2015, Illinois bonds have rallied after the news of an agreement in early July.
- Pension funding remains a challenge for Illinois and other states, but signs of credit contagion have not materialized and appear unlikely.