Week In Review
16 March 2016
Following are markets and economic highlights for the week ended March 11, 2016.
Oil Pushes Stocks Even HigherStocks continue their rally for the 4th week in a row, following a sluggish start to the year. Could this mean that we are no longer in a correction? It’s a bit too early to make that call. But what we know is that a sharp increase in crude oil forecasts, is good for business. “Black gold” hit its highest level this year on Friday morning, and energy stocks were on the up-and-up.
Bleak Outlook for Europe’s YouthECB President Mario Draghi says he’s worried about generation Y in today’s zero-inflation, high youth unemployment climate. He cites ECB policy, saying it protects insiders – the elderly – at the expense of younger generations. “Employers are reluctant to invest in young people, so the incomes of this generation stay lower over their lifetime.” This trend in especially notable in the Mediterranean, with Greece, Spain and Croatia’s unemployment levels hovering around 50%.
Canada and Climate ChangeDespite ongoing primaries, news stateside was quiet this week. Most notably: new Canadian Prime Minister Justin Trudeau made his first official visit to the White House, marking the first Canadian to be in the nation’s table in nearly two decades. After some celebrity fanfare, Obama and Trudeau announced plans to reduce emissions in the wake of the international climate agreement penned earlier this year. Photo credit—Art Babych / Shutterstock.com
Europe, Japan Cut Interest RatesThe European Central Bank expanded bond-buying and cut main interest rates as part of a sweeping stimulus program announced on Thursday. With Europe in negative rate territory, banks are encouraged to lend – rapidly. And Europe isn’t alone: earlier this year, Bank of Japan stunned the world by implementing negative interest rates as part of its “bazooka” monetary policy to get the Japanese economy back on track. The next BOJ meeting is next week, and many expect Governor Haruhiko Kuroda to take an uncharacteristically calm approach. Photo credit—telesniuk / Shutterstock.com
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