The US capital markets continued their run from the first week of the year and the main indices are up over 4% in the first two trading weeks of the year. There were not a lot of specifics to point to this week, as the gains were mostly attributable to optimism and continued strong numbers from last year.
In political news, some rumors and fears that the US could pull out of NAFTA shook the markets a little on Wednesday, though fears may be premature. Also, President Trump rattled the world's cages late in the week referring to some African nations as "s**thole countries". Certainly a dumb, unnecessary and non-politically correct move, which will have unknown ramifications - should impeachment or other legal proceeding occur for President Trump, the markets will see a pull back for sure.
One final item to note was the continued weakness of the US Dollar against other major currencies, falling to a 3-year low. This could be an indicator that developed and emerging markets could be in for strong returns in 2018 as their currencies and economies strengthen and confidence returns. Though watch out for the ECB and other monetary policy bodies as their moves could shake things on a larger scale than the Fed in the US.
Overall, a great start to 2018.
Take care,
Brian