What mattered last week:
- The S&P500 fell for a fourth straight week, closing down -0.9%.
- The fall a result of deleveraging as the pace of the economic recovery slows and fading hopes that a 4th U.S. stimulus package will be agreed before the U.S. election.
- The possibility of a contested U.S. Presidential election continues to overshadow markets.
- As well as concerns that tightening of social distance restrictions in Europe and the UK will weigh on economic growth, highlighted by a drop in last week’s Eurozone PMI’s.
- Volatility, as measured by the VIX index, closed firmer at 26.4.
- U.S. 10-year yields closed lower near 0.66%.
- Gold fell -4.5% to near $1861.00.
- Crude oil fell -2.59% to U.S $40.325/bbl.
- The ASX200 closed 1.70% higher at 5964.9 led by big banks following a relaxation of responsible lending laws.
- In FX, the AUDUSD fell -3.57% to near .7030, giving back most of its gains since early July.
For the week ahead, the key events are:
Australia: Building approvals, private sector credit (Wednesday), retail sales (Friday).
- Retail Sales (Friday): As a result of the lockdown in Victoria, the data on Friday is expected to confirm a fall of -4.2%.
New Zealand: Building permits, ANZ, business confidence (Wednesday), ANZ Roy Morgan consumer confidence (Friday).
China: NBS manufacturing and non-manufacturing PMI and Caixin manufacturing PMI (Wednesday), Caixin service, and composite PMI (Friday).
Japan: Industrial production and retail sales (Wednesday), Tankan business conditions survey (Thursday), employment (Friday).
U.S: Consumer confidence (Tuesday), pending home sales, the first U.S. Presidential debate of 2020 (Wednesday), personal income, personal spending, jobless claims, core PCE and ISM (Thursday), employment (Friday).
- Employment (Friday): A gain of about 900k jobs is expected in September and for the unemployment rate to fall again, from 8.4% to 8.2%.
Canada: GDP July (Wednesday), building permits, and Markit Manufacturing PMI (Thursday).
Euro Area: German inflation (Tuesday), German retail sales, employment and retail sales (Wednesday), EA employment (Thursday), EA inflation (Friday).
UK:Mortgage approvals (Tuesday), current account (Wednesday).
From time to time, StoneX Financial 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.