Market News & Analysis
What mattered last week and a preview of the week ahead
Tony Sycamore November 18, 2019 10:10 AM
What mattered last week:
- A sixth straight week of gains and new record highs for the S&P 500 on continued optimism surrounding the U.S. – China trade deal.
- Also supported by mixed economic data including lower than expected core U.S. CPI and Chinese activity data that allowed bond yields to retrace from recent highs.
- Better news in Europe as Eurozone Q3 GDP was revised higher to +1.2%, from +1.1% YoY.
- In New Zealand, the RBNZ surprised the market keeping interest rates on hold at 1.00%.
- In Australia, weak wages and jobs data weighed on the AUDUSD which closed near .6820.
- Increased expectations of another rate cut in Australia helped the ASX200 close over 1% higher, near 6800.
For the week ahead, the key events are:
Australia: RBA meeting minutes (Tuesday).
New Zealand: NZ Services PSI (Monday), PPI (Tuesday), Global dairy auction (Wednesday).
China: Loan prime rate (Wednesday).
Japan: Balance of trade (Wednesday), CPI (Friday).
U.S.: NAHB housing market index (Tuesday), housing starts, building permits (Wednesday), FOMC minutes (Thursday), existing home sales, Markit flash PMI’s.
- Markit PMI’s (Fri): The market is expecting to see a modest improvement in the composite PMI to 51.9 this month from 50.9 in October.
Canada: Manufacturing sales (Wednesday), CPI (Thursday), retail sales (Friday).
- CPI (Wed): Core CPI is expected to rise 0.3% m/m in October, keeping the YoY rate steady at 1.9%.
Euro Area: EA and German ZEW economic survey (Tuesday), EA industrial production (Wednesday), EA and German GDP Q3 (Thursday), balance of trade (Friday).
UK: GDP, industrial production (Monday), employment (Tuesday), CPI and PPI (Wednesday), retail sales (Thursday).
TECH-FX TRADING PTY LTD (ACN 617 797 645) is an Authorised Representative (001255203) of JB Alpha Ltd (ABN 76 131 376 415) which holds an Australian Financial Services Licence (AFSL no. 327075)
Trading foreign exchange, futures and CFDs on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange, futures or CFDs you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss in excess of your deposited funds and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange, futures and CFD trading, and seek advice from an independent financial advisor if you have any doubts. It is important to note that past performance is not a reliable indicator of future performance.
Any advice provided is general advice only. It is important to note that:
- The advice has been prepared without taking into account the client’s objectives, financial situation or needs.
- The client should therefore consider the appropriateness of the advice, in light of their own objectives, financial situation or needs, before following the advice.
- If the advice relates to the acquisition or possible acquisition of a particular financial product, the client should obtain a copy of, and consider, the PDS for that product before making any decision.
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.