Weekly Roundup: A Wild Week in Markets
In the US, Janet Yellen was replaced by Jerome Powell as Fed Chairman after months of speculation, while Robert Mueller’s probe into Russian interference in the US election last year implicated Paul Manafort and another Trump advisor loosely connected to the campaign. The Republicans also finally released their first attempt at a tax reform bill Thursday, the first time an administration has attempted to overhaul the complex US tax code since the 1980’s.
In Europe, new data showed the Eurozone is recovering nicely with higher GDP and lower unemployment, but the ECB showed it was still unwilling to scale back QE as much as was expected.
Bitcoin skyrocketed above $7400, while Asian markets had a superb run of gainsonce again – and that is only a small fraction of the major market news this week!
As we move into the final day of trading, European indices are mostly lower except for the DAX30 which has gained over 200 points in a single week. There are not many major movements for European equities aside from Renault in France, moving up by over 5% on the CAC40! French bank Societe Generale suffered a share price dip of over 3% after revealing that Q3 profits had been much worse than they expected, thanks to low interest rates and litigation provisions amongst other reasons. Back in May, Societe Generale agreed to pay a €963 million fee to end a legal battle between themselves and the Libyan investment fund over bribery claims, a stain on their reputation which is still haunting them.
In India, the NIFTY gained 29 points closing higher at 10,452.50 helped by its best performers, Tata Motors, Oil & Natural Gas Corp and Axis Bank. The NIFTY50 index contains 50 of India’s biggest firms and has seen a rally this month helped a great deal by financial stocks.
As we wrap up the week Invstrs should look out for earnings from ratings agency Moody’s (#moody) and Warren Buffet’s famous Berkshire Hathaway (#berk-b).
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