Kuwait: September 11, 2017
AUGUST 2017: MARKETS NOW TENTATIVE ON PROMISED US TAX REFORM AGENDA
The global economy continues to hum along, though political headwinds and weather conditions have complicated matters in recent weeks. While the major economies have either maintained robust growth or seen some improvement, the North Korea crisis and severe weather conditions in the US have weighed on markets. Analysts also began to question whether promised US reforms will materialize following months of legislative failures. Thus, despite the improving economic figures, yields have declined generally and stock markets have lost some of their gains. The US dollar also continued its retreat from its 2016 highs, in part as the eurozone outlook has improved.
Global equities continue to perform well with the MSCI All Country World Index posting a gain, for the eighth month straight, of 0.2%. US equities also continue to remain in the green for the fifth month straight. In August, the Dow Jones and S&P 500 reached new highs but retreated to close up 0.1% and 0.3%, respectively. US equity markets were held back by the increased tensions with North Korea, the political turmoil still engulfing the White House, terror attacks and the upcoming debacle surrounding the federal budget/debt ceiling. Towards the end of August, central bank chiefs met in Jackson Hole in Wyoming to discuss monetary policy but ended the meeting without providing a clear path for policy outlook.