GLOBAL MACRO NEWS

 

US economic growth gathers steam
A series of stronger economic data points were released this week, further cementing the case for a hike in policy rates from the US Federal Reserve at its December meeting. Among the weeks highlights were strong durable goods orders (up 4.8% in October), a nine-and-a-half year high in existing home sales and a jump in the manufacturing purchasing managers' index.

 

Sarkozy comeback falters; Fillon advances to second round
A comeback bid by former French president Nicolas Sarkozy in the conservative presidential primary came up short, with Sarkozy coming in third in the first round. The top vote getter, François Fillon, who served as Sarkozy’s prime minister, will face former finance minister Alain Juppé in Sunday’s final primary round. The first round of the presidential election takes place in April.

 

Merkel stands for chancellor again
Despite sagging popularity in opinion polls owing largely to her liberal immigration policies, Chancellor Angela Merkel has announced that she will lead her Christian Democratic Union in next fall’s German elections. Merkel is seeking a fourth term as chancellor, an office she has held since late 2005.

 

Four major US indices set records
On Tuesday, the four major US equity indices, the Dow Jones Industrial Average, the S&P 500 Index, the Nasdaq Composite Index and the Russell 2000® Index, all set record highs. The last time all four indices ended in record territory was December 31, 1999.

 

Trump to make good on TPP threat
President-elect Donald Trump announced his priorities for his first day in office in a video this week. At the top of the list was a vow to withdraw from the Trans-Pacific Partnership, a multilateral trade deal. Also on the list are looser restrictions on energy production, reductions in government red tape, enforcement action against visa overstayers and a measure that would bar executive branch members from lobbying within five years of leaving their jobs. 

 

UK GDP solid post-Brexit
The United Kingdom’s economy has yet to show significant ill effects from Brexit. Its economy grew 0.5% in Q3 versus the prior quarter, boosted by net trade and business and consumer spending. The falling pound has been an important stabilizing factor for the UK economy in the wake of the June vote to leave the European Union.

 

Japan prices continue decline
Japanese core consumer prices fell for the eighth straight month in October, declining 0.4% year over year. The price trend illustrates how difficult it has been for the Bank of Japan to lift the economy out of its deflationary spiral.

 

Turkey forced to raise rates
Turkey’s central bank was forced to raise its benchmark one-week interest rate 0.50% to 8% on Thursday to defend the plunging lira. So far, the rate hike – the first in almost three years –has not arrested the currency’s decline.

 

GLOBAL CORPORATE NEWS

 

Sunoco Logistics and Energy Transfer Partners to combine
The two pipeline companies, both controlled by Energy Transfer Equity, will combine operations in order to cut borrowing and operating costs. Sunoco Logistics will buy Energy Transfer Partners in an all-stock deal valued at nearly $20 billion, creating the second-largest master limited partnership by enterprise value.

 

THE WEEK AHEAD

  • ECB president Mario Draghi testifies before European Parliament committees on Monday, 28 November
  • US Q3 preliminary GDP is released on Tuesday, 29 November
  • The eurozone consumer price index is reported on Wednesday, 30 November
  • Global manufacturing purchasing managers’ indices are reported on Thursday, December 1
  • The US releases its November employment report on Friday, 2 December 

 

 

Stay focused and diversified
In any market environment, we strongly believe that investors should stay diversified across a variety of asset classes. By working closely with your financial advisor, you can help ensure that your portfolio is properly diversified and that your financial plan supports your long-term goals, time horizon and tolerance for risk. Diversification does not guarantee a profit or protect against loss.

 

The information included above as well as individual companies and/or securities mentioned should not be construed as investment advice, a recommendation to buy or sell or an indication of trading intent on behalf of any MFS product.

 

Securities discussed may or may not be holdings in any of the MFS funds. For a complete list of holdings for any MFS portfolio, please see the most recent annual, semiannual or quarterly report. Full holdings are also available on the individual Fund Summary tab in the Products section of mfs.com.

 

Past performance is no guarantee of future results.

 

Sources: MFS research; The Wall Street Journal; The Wall Street Journal Online; Bloomberg News; Financial Times; Forbes.com; CNNMoney.com; NBCNews.com.

 

This content is directed at investment professionals only.

 

34791.47

 

Stay focused and diversified
In any market environment, we strongly believe that investors should stay diversified across a variety of asset classes. By working closely with your financial advisor, you can help ensure that your portfolio is properly diversified and that your financial plan supports your long-term goals, time horizon and tolerance for risk. Diversification does not guarantee a profit or protect against loss.

 

The information included above as well as individual companies and/or securities mentioned should not be construed as investment advice, a recommendation to buy or sell or an indication of trading intent on behalf of any MFS product.

 

Securities discussed may or may not be holdings in any of the MFS funds. For a complete list of holdings for any MFS portfolio, please see the most recent annual, semiannual or quarterly report. Full holdings are also available on the individual Fund Summary tab in the Products section of mfs.com.

 

Past performance is no guarantee of future results.

 

Sources: MFS research; The Wall Street Journal; The Wall Street Journal Online; Bloomberg News; Financial Times; Forbes.com; CNNMoney.com; NBCNews.com.

 

This content is directed at investment professionals only.

 

34791.47

 

Stay focused and diversified
In any market environment, we strongly believe that investors should stay diversified across a variety of asset classes. By working closely with your financial advisor, you can help ensure that your portfolio is properly diversified and that your financial plan supports your long-term goals, time horizon and tolerance for risk. Diversification does not guarantee a profit or protect against loss.

 

The information included above as well as individual companies and/or securities mentioned should not be construed as investment advice, a recommendation to buy or sell or an indication of trading intent on behalf of any MFS product.

 

Securities discussed may or may not be holdings in any of the MFS funds. For a complete list of holdings for any MFS portfolio, please see the most recent annual, semiannual or quarterly report. Full holdings are also available on the individual Fund Summary tab in the Products section of mfs.com.

 

Past performance is no guarantee of future results.

 

Sources: MFS research; The Wall Street Journal; The Wall Street Journal Online; Bloomberg News; Financial Times; Forbes.com; CNNMoney.com; NBCNews.com.

 

This content is directed at investment professionals only.

 

34791.47

 

Stay focused and diversified
In any market environment, we strongly believe that investors should stay diversified across a variety of asset classes. By working closely with your financial advisor, you can help ensure that your portfolio is properly diversified and that your financial plan supports your long-term goals, time horizon and tolerance for risk. Diversification does not guarantee a profit or protect against loss.

 

The information included above as well as individual companies and/or securities mentioned should not be construed as investment advice, a recommendation to buy or sell or an indication of trading intent on behalf of any MFS product.

 

Securities discussed may or may not be holdings in any of the MFS funds. For a complete list of holdings for any MFS portfolio, please see the most recent annual, semiannual or quarterly report. Full holdings are also available on the individual Fund Summary tab in the Products section of mfs.com.

 

Past performance is no guarantee of future results.

 

Sources: MFS research; The Wall Street Journal; The Wall Street Journal Online; Bloomberg News; Financial Times; Forbes.com; CNNMoney.com; NBCNews.com.

 

This content is directed at investment professionals only.

 

34791.47