Major U.S. equity market indices have fallen again this week. The Nasdaq-100 closed at 4,141.08 on Friday, reaching its lowest level since August (see below). Crude oil futures closed below $30 a barrel on the week, the lowest level since July 2000.
The trade-weighted index of the U.S. dollar against major currencies, as obtained from FRED with a one-week lag, reached its highest level since 2003. The dollar strengthened by more than one percent against many major trading partners in the past week. Notably, the dollar increased by 1.5 percent over sterling, by 1.36 percent over the Mexican peso, by 2.17 percent against the Canadian dollar, and by 3.37 percent against the rand.
Monthly data on capacity utilization and industrial production was also bleak. December total industry capacity utilization was 76.5 percent, the lowest level since July 2013. The Fed’s industrial production index registered at 106.2 during December, its lowest level since June 2014.
I see that my dashboard is not capturing the rally in treasury markets (through I notice the decline the yield spread between 10 year treasuries and 3 month t-bills). I’ll aim to add some more charts showing fixed income markets for the next weekly update.