US Stocks finished slightly higher. Asian markets moved higher on hopes for further stimulus in China and Japan. US Treasury yields declined and bond prices rose as weak economic numbers raised hopes of further delays to the FED raising interest rates. In economic news this week:
- China’s General Administration of customs reported that exports dropped 3.7% in September from a year ago while imports fell 20.4%.
- China’s Association of Automobile Manufacturers reported that passenger car sales rose 3.3% in September after three monthly declines. Combined sales of passenger and commercial vehicles were up 2.1%. The growth was attributed to the end of dealers reducing their inventory and a 50% cut in the purchase tax for cars with engines smaller than 1.6 liters.
- China’s National Bureau of Statistics reported that year over year consumer inflation was 1.6% in September below the 2.0% Y-o-Y increase in August. China’s targeted inflation is 3.0% so this bodes well for more stimulus in China.
- The U.S. Commerce Department reported that Retail sales rose a seasonally adjusted 0.1% in September from August, less than the 0.2% expected. The gain was attributed to automobile sales. In fact, excluding auto sales retail sales were down a seasonally adjusted 0.3%.
- The Labor Department reported
- Consumer prices fell as seasonally adjusted 0.2% in September. Excluding food and energy prices, prices rose 0.2%.
- In the prior week initial jobless claims fell to 255,000 from a downwardly revised 262,000 in the week before. This ties the level of claims during the week of July 18th and is the lowest level of claims since November 1973. The four week moving average of claims also fell 2,250 to 265,000.
- The Federal Reserve reported that industrial production fell 0.2% in September. This follows a 0.1% decline in August and was attributed to the strong dollar and week overseas economies affecting exports.
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Loren C. Rex, CFP®, AIF® Erik Smith
Generations Financial Planning & Wealth Management 269-441-4143
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Battle Creek, MI 49017
Carrie Fuce, Assistant 269-441-4091
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These are the opinions of Loren Rex and Erik Smith and are not necessarily those of Cambridge, are for informational purposes only, and should not be construed or acted upon as individualized investment advice.