U.S. equities continued to push higher last week, reversing some of the past month’s losses. Several factors, both domestically and internationally, will be closely scrutinized to determine if the rally has more momentum. Global growth will be in the spotlight as a key vote regarding the future of Brexit is scheduled for Tuesday. It is looking more and more likely that the U.K. will leave the European Union in a “no deal” fashion. This would add more uncertainty to markets and raise the potential of a recession in the U.K.
Domestically, the government shutdown continues and is now the longest in history. Markets will be keyed into the release of fourth-quarter earnings for some of the largest U.S. financial institutions. I will be watching closely to see if volatility during the quarter had a negative impact on earnings.
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