Equity markets were mixed last week, as correlations among the various indices we track fell. The S&P 500, for example, gained just 0.09 percent, while the technology-heavy Nasdaq gained more than 1 percent.
The Federal Reserve (the Fed) announced last week that it plans to keep benchmark fed funds rates at current levels at least through late 2014. Read more now.
Treasuries were strong across the curve, with the 10-year receiving record-low yields on its $21 billion auction.
We see some opportunities in longer-dated municipals—14 to 22 years out. Indeed, more and more investors seem to be extending duration, as $626 million entered long municipals in the week ending Jan. 11. Significant duration exposure comes with that part of the curve, however.
Treasuries were positive last week, as the curve remained in the same range it was in for the last three months of 2011.
Equities also posted a strong start to 2012 with a gain of 1.67 percent in the S&P 500. The Nasdaq was the big winner for the week, however, gaining 2.66 percent as technology stocks surged. Read more now.
The final week of 2011 saw trading that mimicked what we saw throughout the year: back-and-forth moves, volatility, and very little net change when all was said and done.
Looking back at the last year, the risk-off trade was the major theme within the equity space. More defensive sectors like utilities, consumer staples, health care, and telecom were the best performers.
Equity markets posted strong percentage gains last week. The S&P 500 climbed 3.8 percent, posting the strongest gains among the indices tracked in the table below.
Heading into the last week of the year, it looks as if the Dow Jones Industrial Average is set to be the relative winner for the year. Barring a large decline this week, it will likely end up in the black.
Last Friday, 9 additional European countries reportedly joined the 17 eurozone countries in drafting a new treaty for fiscal union. The United Kingdom was the only country to opt out of this agreement for now. Read more now.
Equity markets continued to slide, posting four days of losses last week, after several down days in the prior week. In total, the S&P 500 Index has lost ground in all of its last seven trading days, declining nearly 8 percent.
A German 10-year bund auction failed to get bids for 35 percent of its auction last week, subsequently increasing the yield of the issue. Read more now.
Treasuries ended the week flat after two big moves in opposite directions earlier in the week. The 10-year ended the week close to 2 percent while the rest of the curve ended the week flat, with the 2-year at 0.23 percent and the 30-year at 3.1 percent.
Europe was once again the lead story in the headlines and helped dictate equity market direction last week. The market experienced large swings, but the S&P 500 ended with a gain of nearly 1 percent.
The unexpected announcement by Greek Prime Minister Papandreou that he would put the European Union’s (EU) most recent bailout package to a referendum was not well received by equity markets and contributed to declines across the board last week.
Amid international and domestic pressures, Papandreou has agreed to step down as Greek prime minister. Opposition leader Antonis Samaras will lead a new interim unity government.
Equity markets posted strong gains across the board last week. The S&P 500 gained 3.79 percent.
Treasuries sold off throughout the week before turning around on Friday, as Italy sold 10-year debt at the highest levels on record. The risk is still in place, and investors jumped back into “safety” heading into the weekend. Read more now.
