Weekly Market Commentary 08/18/2017

The terrible event in Charlottesville and president Trump’s controversial comments about it overshadowed economic data this week. Needless to say, the volatility that buffeted the financial markets the previous week – stoked by concerns over North Korea – returned in force this week, with stock prices undergoing the steepest nosedive in three months on Thursday. The markets’ jitters received fuel from an apparent terrorist attack in Barcelona, a stark reminder of the geopolitical risks that continue to overhang the global economy. Not surprisingly, investors turned risk averse, at least temporarily, channeling funds into the safety of Treasury securities, driving the 10-year yield 10 basis points lower on Thursday – an unusually sharp one-day move – before it steadied on Friday when things calmed down a bit.