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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.

“Global Summer Earnings--Sizzle or Fizzle?"

KEY TAKEAWAYS

  • 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.

"Gauging Global Growth"

KEY TAKEAWAYS

  • 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.

"Illinois Issues"

KEY TAKEAWAYS

  • 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.