What mattered last week and a preview of the week ahead

What mattered last week: The S&P500 rose over 3.5% to close at its highest level since early March 2020. Buoyed by dovish comments from Fed Chair Powell, and prospects of a vaccine for COVID-19. Despite an increase in tension between the U.S. and China.


What mattered last week:

  • The S&P500 rose over 3.5% to close at its highest level since early March 2020.
  • Buoyed by dovish comments from Fed Chair Powell, and prospects of a vaccine for COVID-19.
  • Despite an increase in tension between the U.S. and China.
  • Volatility, as measured by the VIX index, fell 3.7 points to 28.2.
  • U.S. 10-year yields closed relatively unchanged at 0.66%
  • After a strong rally on Monday, gold fell into the back end of the week to close slightly lower near U.S $1735.
  • A fourth straight week of gains for crude oil futures closing at U.S $33.25/bbl.
  • The ASX200 rose 1.70%, to close near 5500, supported by a rise in iron ore prices.
  • In FX, the AUDUSD traded to its highest level since early March, before closing near .6530.

For the week ahead, the key events are:

A key focus of traders this week will be on progress as countries continue to gradually reopen economies.

Australia: Q1 Capital expenditure (Thursday), Private sector credit (Friday).

  • Q1 Capital expenditure (Thursday): The expectation is for a 4% decline in business investment in Q1 2020.

New Zealand: Balance of trade (Tuesday), ANZ business confidence (Thursday), ANZ Roy Morgan consumer confidence (Friday).

China: Industrial profits (Wednesday), NBS manufacturing, and non-manufacturing PMI’s (Sunday).

Japan: Industrial production, employment (Friday).

U.S: New home sales, consumer confidence (Tuesday), durable goods, and initial jobless claims, pending home sales (Thursday), personal income, and spending (Friday).

  • Consumer confidence (Tuesday): Consumer confidence is expected to bounce in May, following the reopening of the economy.

Canada: Building permits (Wednesday), current account (Thursday), Q1 GDP (Friday).

Euro Area: German IFO business survey (Monday), EA business confidence, and German HICP inflation (Thursday), German retail sales (Friday).

UK: Nationwide housing prices (Friday).

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