A review of the week past and the week ahead

Charts (3)

What mattered last week:

  • The S&P500 finished the week unchanged, recovering from a 2% fall on Monday.
  • Monday's sharp selloff coming after some European countries banned travel from the UK in response to a new strain of Covid19.
  • Congress passed a new fiscal stimulus package. However outgoing President Donald Trump refused to sign off on the bill, due to “wasteful” spending and insufficient stimulus checks.
  • The UK and the EU finally agreed on a Brexit deal.
  • U.S economic data was softer. Consumer confidence, personal income, and personal spending dipped, while weekly jobless claims rose.
  • Volatility, as measured by the VIX index closed flat at 21.5%.
  • U.S. 10-year yields closed flat near 0.93%.
  • Gold closed flat near $1880.00.
  • Crude oil fell for the first time in 8 weeks closing at $48.23/bbl.
  • The ASX200 closed the week flat at 6664.8.
  • In FX, the AUDUSD fell 2% on Monday to .7462, before recovering to close the week back near .7600c.  

For the week ahead, the key events are:

Australia: Nothing of note.

New Zealand: Nothing of note.

China: NBS manufacturing and non-manufacturing PMI’s (Thursday).

Japan: Industrial production (Monday).

U.S: S&P Case-Shiller home price index (Tuesday), pending home sales (Wednesday), jobless claims (Thursday).

Canada: Nothing of note.

Euro Area: Nothing of note.

UK: Nationwide housing prices (Wednesday).

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.