Concerns about economy
The S&P 500 closed the week at 2,952.01, or -0.33% lower in the week. Dow Jones closed at 26,573.72 or -0.92% weekly return, and Nasdaq gained +0.54%. The intra-week move was large with the S&P 500 trading on a range between 2,855 and 2,992. The volatility index VIX closed the week at 17.04 from a 17.22 level a week before, however it spiked over 21 levels on Wednesday and Thursday. In Europe, Euro Stoxx 600 traded down -2.95% in the week, due to economic and trade concerns. The German DAX closed the week down -2.97% and the UK FTSE 100 underperformed with -3.71% weekly return.
The 10y UST closed at 1.53% from 1.68% a week before. After touching 1.75% on Tuesday, the yield moved down by -14% until Friday. The difference between the 10y UST and the 2y UST yield was +11.93 bps on Friday (vs. +4.83 bps a week ago) and remained positive during the entire week. The yield curve moved down and steepened: 1mo USD from 1.86% to 1.64% yield, 3mo UST from 1.78% to 1.68% yield, 2y UST from 1.63% to 1.40%, 5y UST from 1.56% to 1.35% and 30y UST from 2.13% to 2.01%. US Corporate Bond spreads: Investment Grade widened 7 bps to 157 bps; High Yield widened 47 bps to 514 bps. German 10-year Bunds yield closed at -0.58% vs. -0.57% a week ago.
The US Dollar Index (DXY) lost -0.27% in the week closing at 98.84. EUR closed the week at 1.0979 (+0.36% weekly); the Japanese Yen closed at 106.93 (-0.91% weekly) and the Swiss Franc at 0.9957 (+0.48% weekly). Gold gained +7.75% in the week and closed at 1,504.76, trading as low as 1,460 on Tuesday. Oil was lower with Brent closing at 58.43 (-5.62% weekly) and WTI also down at 53.01 (-5.19% weekly).