Trade talks resume
The S&P 500 closed the week at 2,978.71, or +1.79% higher from last week. Dow Jones closed at 26,797.46 or +1.49% weekly return, and Nasdaq gained +1.76%. The bulk of the move came on Thursday open after the resumption of US-China trade talks announcement. The volatility index VIX closed the week at 15.00 from a 18.98 level a week before. In Europe, Euro Stoxx 600 advanced +2.02% on the week. Italy outperformed last week with +2.93% and, German DAX gained +2.11% and the UK FTSE 100 underperformed with a +0.98% weekly gain.
The 10y UST closed at 1.56% from 1.49% a week before, intra-week range was 1.42% to 1.60%. The difference between the 10y UST and the 2y UST yield was +1.4 bps on Friday and was positive from Wednesday on. The yield curve moved up on maturities from 2 years on and the curve steepened: 3mo UST from 1.98% to 1.95% yield, 2y UST from 1.50% to 1.54%, 5y UST from 1.39% to 1.43% and 30y UST from 1.96% to 2.02%. US Corporate Bond spreads: Investment Grade remained at 155 bps; High Yield contracted 6 bps to 480 bps. German 10-year Bunds yield closed at -0.64% compared to -0.70% a week ago.
The US Dollar Index (DXY) slipped -0.82% in the week closing at 98.11. EUR closed the week at 1.1029 (+0.42% weekly); the Japanese Yen closed at 106.92 (+0.60% weekly) and the Swiss Franc at 0.9874 (-0.29% weekly). Gold decreased -0.89% in the week and closed at 1,506.92. Oil was up with Brent closing at 61.78 (+2.23% weekly) and WTI up at 56.73 (+1.63% weekly).