Leader Week in Review - July 10th, 2015
Economic Data Releases:
In a light week on the economic data front, market direction was dominated by geopolitical headlines. Early in the week, the dual issues of Greece and the Chinese stock market pushed investors into the safety of Treasuries and drove credit spreads wider. After Greece submitted a new proposal to the European Commission, risk assets reversed course and Treasury yields rose dramatically to end the week higher.
While Greece and China’s stock market might drive the day-to-day gyrations of the markets, both are non-systemic for the US economy, which continues to improve. While nothing new was gleaned from the latest FOMC statement, Janet Yellen’s speech at the City Club of Cleveland on Friday indicated the Fed is looking past these non-systemic issues. The Fed is focusing on the labor market, inflation and the longer-term outlook for the US economy, which is what their mandate is anyway.
Upcoming Economic Data Releases: