» Financial Market Highlights 02-04-13 Decision Economics

Financial Market Highlights 02-04-13

Posted February 4, 2013 by rvillareal

First Look at 2013

  • Treasury yields higher in January, the 10 year around 2%  
  • FOMC statement on January 30, 2012 makes no significant change to its policy settings.
  •  Fed continues to commit to low rate until progress toward full employment is clearly evident.
  • S&P 500 hits new highs on better data, continued Fed stimulus, and firmer outlook.  [private]
  • DE upgrades to Solid Overweight on Equities (75%; 55% neutral).
  • S&P Relative Sector Performance: Consumer Discretionary stocks powered higher relative to Staples. Future relative performance however, could be impacted by the increase in payroll taxes.
  • High frequency data suggest that China is en-route for recovery, which could influence commodity prices.
  • Eurozone recession may be easing. Hope is for some form of revival in activity this year, but only a flat outcome is seen on average in 2013, but with 1% outcome penciled in for 2014.