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.
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).
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