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).
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