Asian markets traded cautiously as market participants continued to digest the increase in US yields early last week which underpinned some of the initial strength seen for the greenback and triggered US equities to meander away from all-time highs. Economic data was somewhat strong with better-than-expected retail sales and PMI’s released in line with expectations in the US. The week ahead will see a monetary policy meeting in New Zealand as well as speeches from FED Chair Jerome Powell who is set to testify on the semi-annual monetary policy report before the House Financial Services Committee.Read more
Going into the week ahead, Japan’s economy expanded by more than expected in the fourth quarter, further extending the recovery from its worst recession post war. As a result, the Nikkei 225 finished the session up close to 2% breaking through the 30,000 handle; marking the first breach of the level in more than three decades. Company shares have continued to report positive earnings and with the nation also set to start vaccinations later on this week, it bodes well for market participants and investors. Conversely the Japanese Yen was amongst the weaker currencies starting the session this week as an upbeat risk tone swept across markets on growing optimism surrounding the Pandemic. Flows into safe havens were capped as Gold also remained subdued on lack of haven demand; prices have since retreated from the $1,850/oz level which was tested last week.Read more
Last week saw the Dollar rally and press to multi month highs against a basket of currencies as a positive upbeat risk tone took centre stage. US equity markets continued to trade at all-time highs as market participants continued to digest positive earnings, progress in stimulus talks and positive economic data. As the week drew to a close, a weaker than expected Jobs report led to dollar strength cooling off as EUR/USD reclaimed the 1.2000 handle.Read more
Last week saw the FED leave rates unchanged as expected whilst maintaining its asset purchases at the current rate. Fed Chair Powell concluded that household spending on goods has moderated whilst the labour market participation continues to remain below pandemic levels weighing on economic activity and job creation. The Fed also outlined that monetary policy is expected to remain accommodative until employment and inflation objectives have been achieved. Market participants will look ahead to the NFP jobs data to provide further insight on the state of the labour market as an additional 55,000 jobs are forecasted to have been added in the past month.Read more
This week the markets will be watching President Trump’s impeachment trial, the BoE rate decision, corporate earnings from the big tech companies and of course the progression of the Coronavirus. Here’s what you need to know, in under 5 minutes.
Here’s what you need to know for the week ahead.
President Trump’s impeachment trial begins, the World Economic Forum in Davos takes place, the next batch of corporate earnings will be released and finally, Central Banks monetary policy outlook will be watched by the markets.
Last week the markets went from fear of a war with asset prices driving lower in risk off developments to a bull run with Trump showing signs of wanting peace between the two nations and the markets reflecting this positive rhetoric as US and China approach a trade deal.
Hi, in this week’s market brief, the top three market movers have been, political unrest in Hong Kong leaves the market uncertain and Asian pacific assets to show weakness, US and China are still far apart from a phase one trade agreement and the head of Fed Powell testifies in congress.
In this week’s market brief, the top three market movers have been, US equities set consecutive record highs as US-China have shown signs of a trade agreement, the Bank of England kept rates unchanged at 0.75% but two MPC voters dissented for a rate cut which was a surprise and finally recession fears in Germany might have been avoided with the rebound in exports.
In this week’s market brief, the top three market movers have been, the Fed cuts rates for the third time this year, concerns have arisen for the on-going trade deal with US and China. Finally, the Brexit due date went by on the 31st of October but the saga continues with another extension.