Economic and market updates

Economic Update for January 23, 2017

Highlights of news-making events of the past week, from the economy and profits to Europe and interest rates.

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economy

The BLS reported the CPI rose 0.3% and the core CPI was up by 0.2% in December. The Fed noted industrial production increased 0.8% in December. The Commerce Dept. stated housing starts jumped 11.3% in December.

employment

Initial jobless claims fell by 15,000 to 234,000 in the week ended January 14, 2017 according to the Labor Department. The four-week moving average was 246,750.

profits

As of January 12, 2017, of the 29 S&P 500 Index companies reporting fourth-quarter earnings, 20 beat analysts' estimates, according to S&P Dow Jones Indices.

emotion

The Bloomberg Consumer Comfort Index rose to 45.2 in the week ended January 15, 2017, up from 45.1 in the prior week. The ZEW Indicator of Economic Sentiment for Germany increased slightly in January.

europe

Eurostat reported annual inflation climbed to 1.1% in the euro area in December. The region posted a trade surplus in November. The U.K.'s Office of National Statistics reported that the CPI rose 1.6% and producer prices increased 2.7% in December. Inflation also rose 0.5% in Germany in December, the Federal Statistical Office found.

rates

The yield on the 10-year U.S. Treasury note rose. The European Central Bank decided to hold rates steady, noting it will maintain its asset-purchasing stimulus program through the end of the year.

risks

  • Uncertain GDP impact of President-elect Trump's fiscal and trade policies
  • Deflating house prices in major cities across China
  • Populist political momentum across Europe

All economic and performance information is historical and does not guarantee future results. The views and opinions expressed are those of Putnam Investments, are subject to change with market conditions, and are not meant as investment advice.

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