With the exception of Technology (-0.7%), all sectors rose in January. The best-performing sector in January was Health Care, which advanced 6.8%.
The US ISM Manufacturing PMI improved to 50.90, joining the Services PMI in expansion territory for the first time since March 2024. Gold jumped 7.8% in January to $2,812.10 USD per ounce and the price of Brent crude oil rose 3.6% amid looming threats of a possible trade war between the U.S. and various countries.
The yield curve remained largely flat month-over-month, with the largest move across the curve being the 3-month slipping 6 basis points. In bond funds, the iShares iBoxx $ High Yield Corporate Bond ETF (HYG) advanced 1.4%.
Off the YCharts! The State of a Potential Trade War
There are looming threats of U.S. imposed tariffs on certain countries, namely Canada and Mexico. What does the trade balance between each country look like?
Below are the U.S. trade balance figures between Canada and Mexico as of Q3 2024:
- Trade balance on Services with Canada: $9.604 billion
- Trade balance on Goods with Canada: -$19.03 billion
- Trade balance on Services with Mexico: $1.295 billion
- Trade balance on Goods with Mexico: -$45.91 billion
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