DAILY MARKET UPDATE

January 17, 2020

Markets in Asia rose on Friday, as the release of China’s GDP numbers showed growth was in line with analyst expectations; China’s 4Q GDP release basically in-line with expectations (y/y figure in-line but q/q 10bps better). More interesting is China’s December activity data, with industrial production notably strong (+6.9% y/y vs. st. +5.9%) while FAI and retail sales also modestly surpassed expectations. European bourses climbed to record highs with basic resource stocks leading the way. North America’s major equity indices finished with modest gains (with the exception of the small-cap Russell) to extend a strong weekly performance that saw the three major market indices rise to record highs amid strong global economic data and a solid start to the earnings season. Market sentiment was strengthened by strong U.S. housing data, as the Commerce Department reported home builders broke ground on new homes at the highest rate in 13 years during December. For the week, the Dow rose 1.8%, the S&P 500 climbed nearly 2%, the Nasdaq rallied 2.3%, and the BSD Global Tech Hedge Fund advanced 0.7% while holding a 50% hedge in this frothy market.