The G-7 summit began with the U.S. continuing to challenge established norms and trade under President Trump’s leadership. The G-7 summit dates back to 1975 after the first oil shock and the breakdown of the Bretton Woods fixed exchanged rate system. The summit was built to tackle large economic issues and discussion since has expanded to include foreign policy issues. Data released by the U.S. Department of Labor on Tuesday underscored the tightness in the labor market. The number of job openings now exceeds the number of those who are searching for work. End the end of the week, China’s ZTE agreed to pay $1 billion in fines and restructure in a deal to remain solvent.

Despite the volley of trade threats, U.S. large cap stocks over the last month rose 4.2% and are now up nearly 5% year to date. Small cap stocks, with limited exposure to global markets, extended their large upswing – now up nearly 23% on a year to date basis. Developed international stocks also were up last week and are in the black year to date. Synchronized global growth, though, seems to be taking a time out and emerging markets have taken the brunt of this loss. Rates bounced off last week’s lower levels – biting into bond prices. After a huge upswing, the rise in oil prices reversed course and commodity prices reflected this downshift.

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