A review of the week past and the week ahead

Charts (3)


What mattered last week:

  • A strong start to the year as the S&P500 closed the week +1.83% higher at 3825, another record close.
  • Supported by prospects of more stimulus following the Democrats winning both Georgia Senate elections.
  • And despite the continued acceleration of new COVID19 cases in the UK, EU, and the US.
  • Congress confirmed that Joe Biden won the US Presidential election.
  • Volatility, as measured by the VIX index dropped -5.23%, to 21.6.
  • U.S. 10-year yields rose 20bps to near 1.12%.
  • In response to the rise in yields, gold fell -2.59%, to close near $1850.
  • Crude oil rose over +7%, to close at $52.24/bbl supported by Saudi output cuts.
  • The ASX200 started the year strongly rising +2.59% to close at 6757.9.
  • In FX, the AUDUSD rose +0.87% to close near .7760, on the back of buoyant risk sentiment and strong commodity prices.

For the week ahead, the key events are:

Australia: Housing finance (Friday).

New Zealand: Building approvals (Thursday).

China: CPI (Monday), balance of trade, new yuan loans, and total social financing (Thursday), house price index (Friday).

  • CPI (Monday): Inflation is expected to rise by 0.1% in December from -0.5% y/y.

Japan: Current account, (Tuesday), machinery orders, and PPI (Thursday).

U.S: CPI (Wednesday), jobless claims (Thursday), retail sales, industrial production (Friday).

  • CPI (Wednesday): Core CPI for December is expected to remain at 1.6% y/y.

Fed speakers on the wires include Powell, Brainard, and Clarida.

Canada: Nothing of note.

Euro Area: EA industrial production (Wednesday), German Government budget, and German GDP Thursday).

UK: Industrial production and GDP (Friday).  

From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.