Broker Check

November 19, 2018 - Brexit Back in the Spotlight

| November 19, 2018

U.S. equities moved lower for the week, but ended on a high note as the S&P 500 Index broke a five-day losing streak on Thursday and then closed higher Friday as well, partly boosted by positive comments on U.S.-China trade talks. Oil snapped a record 12-day losing streak on Thursday, but falling prices continued to drag on the energy sector, while technology underperformed once again amid disappointing earnings reports from several high-profile names and a continued slide in heavily-weighted Apple. On the economic front, retail sales reversed a two-month downturn, though retail control-group sales, which are used to calculate gross domestic product, slightly missed estimates. Nevertheless, as LPL Chief Investment Strategist John Lynch noted, "We still believe that the U.S. consumer is the healthiest in years, aided by fiscal stimulus and modestly accelerating wages, and strong consumer demand will drive growth going forward."

Overseas, Brexit took center stage with officials reaching a tentative plan for the U.K.’s withdrawal from the European Union following more than a year of negotiations. However, regional stock indexes dropped more than 2% on the week amid a resurgence in uncertainty tied to the deal. Investors’ angst stemmed from Prime Minister Theresa May’s struggles to gain buy-in for her "final" plan with multiple members of her own party stepping down since it was unveiled, including Brexit Secretary Raab. In Asia, Chinese stocks finished up more than 3%, buoying emerging markets, after government officials stepped up policy support following a series of data that showed its economy is under increasing downward pressure.

Turning to the week of Thanksgiving, we’ll get several sets of U.S. housing market data, along with the Conference Board’s Leading Economic Index. Abroad, manufacturing and services Markit Purchasing Managers’ Index releases will be coming out of Japan, Germany, France, and the composite Eurozone. Track these and other important events on our Weekly Global Economic & Policy Calendar.

###

Important Disclosures

International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in emerging markets.

Because of their narrow focus, sector investing will be subject to greater volatility than investing more broadly across many sectors and companies.

Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.

Indices are unmanaged and cannot be invested into directly. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment.

Past performance is not indicative of future results. The tax loss harvesting and other tax strategies discussed should not be interpreted as tax advice and there is no representation that such strategies will result in any particular tax consequence. Clients should consult with their personal tax advisors regarding the tax consequences of investing.

Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.

The opinions voiced in this material are for general information only and are not intended to provide or be construed as providing specific investment advice or recommendations for any individual security.

This research material has been prepared by LPL Financial LLC.

To the extent you are receiving investment advice from a separately registered independent investment advisor, please note that LPL Financial LLC is not an affiliate of and makes no representation with respect to such entity.

Not FDIC/NCUA Insured | Not Bank/Credit Union Guaranteed | May Lose Value | Not Guaranteed by any Government Agency | Not a Bank/Credit Union Deposit

Securities and Advisory services offered through LPL Financial LLC, a Registered Investment Advisor

Member FINRASIPC /

For Client Use - Tracking #1-794330 (Exp. 11/19)