What mattered last week:
- The S&P500 gained 1.5%, shaking off the news that President Trump and First Lady Melania Trump had tested positive for coronavirus.
- As well as a jobs report that suggests the pace of the economic recovery in the U.S. is slowing. 661k jobs were created in September, 200k less than expected.
- The 4th U.S. stimulus package remains in limbo as Democrats and Republicans remain divided.
- The possibility of a contested U.S. Presidential election remains a threat.
- Volatility, as measured by the VIX index, closed firmer at 27.6.
- U.S. 10-year yields closed lower near 0.69%.
- Gold gained more than $37.00 closing near $1900.
- Crude oil fell -7.95% to U.S $37.05/bbl as Libya’s production of oil resumed.
- The ASX200 closed 2.90% lower at 5791.5, erasing the prior week’s gains.
- In FX, the AUDUSD rose 1.87% to close near .7160, as the U.S. dollar softened.
For the week ahead, the key events are:
Australia: NAB business confidence (Monday), balance of trade, RBA interest rate meeting, Federal Budget (Tuesday), housing finance (Friday).
- RBA interest rate meeting/Federal Budget (Tuesday): The RBA is expected to leave monetary policy unchanged on Tuesday to allow the Federal Government both the time and the space to promote its Federal Budget delivered later the same day. For a full review of both click here
New Zealand: NZIER business confidence and capacity utilization, global dairy trade auction (Tuesday).
China: Caixin service and composite PMI (Friday).
Japan: Current account (Thursday), household spending, and machine tool orders (Friday).
U.S: ISM non-manufacturing (Monday), balance of trade (Tuesday), FOMC meeting minutes, and jobless claims (Thursday).
Canada: Balance of trade (Tuesday), Ivey PMI (Wednesday), housing starts (Thursday), employment (Friday).
Euro Area: EA retail sales (Monday), German factory orders and construction (Tuesday), German industrial production (Wednesday), German balance of trade, and current account (Thursday).
UK: Construction (PMI), Halifax house price index (Wednesday), balance of trade (Friday).
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.