What mattered last week:
- Despite a softer jobs report for November, the S&P500 rose 1.69% last week on vaccine optimism and rising expectations of additional fiscal stimulus.
- Supported also by falling new coronavirus cases in Europe and the UK as a result of lockdown.
- Australian Q3 GDP data printed at 3.3%, well above expectations of 2.5% growth, driven by robust consumer spending.
- Volatility, as measured by the VIX index, closed unchanged at 20.8.
- U.S. 10-year yields closed 12bp higher, near 0.97%.
- Gold closed 2.90% higher, near $1838.00.
- A fifth straight week of gains for crude oil closing near $46.26/bbl.
- The ASX200 closed 0.50% higher at 6634.1, locking in five straight weeks of gains.
- In FX, the AUDUSD closed the week near .7425, supported by surging commodity prices and broad-based U.S. dollar weakness.
For the week ahead, the key events are:
Australia: RBA Governor Lowe speech (Monday), Nab business confidence, and house price index (Tuesday), Westpac consumer confidence (Wednesday).
New Zealand: Business NZ PMI (Friday).
China: Balance of trade, foreign exchange reserves (Monday), CPI (Wednesday).
- CPI (Wednesday): Falling food prices are expected to see inflation fall to zero in November.
Japan: Reuters Tankan, current account (Tuesday), machinery and machine orders (Wednesday).
U.S: Jolts job openings (Wednesday), CPI (Thursday).
Canada: BoC Interest rate decision (Wednesday).
Euro Area: German industrial production (Monday), German and EA ZEW economic sentiment index, (Tuesday), German balance of trade and current account (Wednesday), ECB interest rate decision (Thursday).
- ECB interest rate decision (Thursday): The market consensus is for the ECB to expand its QE and bank lending programs to counter the slowdown from lockdowns.
UK: Halifax house price index (Monday), balance of trade, industrial production, and GDP (Thursday).
Brexit negotiations will continue in the hope of a deal before year-end.
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