Markets Gain On Optimism – Equity Overview

Optimism deriving from continuing fiscal and monetary stimulus efforts in addition to vaccination progress drove equities higher in the first quarter. Major equity indices moved higher with the energy, financial and industrial sectors leading in the first quarter.

International developed market indices were mostly positive for the first quarter, with emerging market indices primarily flat to negative amid growing debt concerns. Rising inflation is stoking some hesitation among debt-heavy global companies as costs to operate and borrow increase.

As the cost of production materials has increased over the past few months, so has the concern as to how company earnings will be affected. The PPI Index, which measures wholesale production prices for companies has been rising steadily for the past year.

Sources: BEA, Bloomberg, Federal Reserve

Disclaimer: The information published herein is provided for informational purposes only, and does not constitute an offer, solicitation or recommendation to sell or an offer to buy securities, investment products or investment advisory services. All information, views, opinions and estimates are subject to change or correction without notice. Nothing contained herein constitutes financial, legal, tax, or other advice. The appropriateness of an investment or strategy will depend on an investor’s circumstances and objectives. Please consult your Advisor about what is best for you.