Collinson Forex - Weekly Market Report and Calendar

Weekly Market Report

US Equity markets rebounded, to close out a tumultuous week of trading. Panic selling on Wednesday and Thursday appear to be a technical correction in the 'bull market' rather than a turn, although Europe and Asia really suffered some serious pain. Chinese markets were mangled and this will continue until they negotiate a new trade agreement with the US.

The currencies remained above the equity fray, with little fallout from the share market correction, despite the heightened risk sentiment. The spike in US interest rates was a major contributor to the equity correction, but yields stabilised as the sell-off gained momentum. The Fed were on target to raise rates again in December, but may reconsider, considering the market correction and extreme rhetorical pressure from the White House?

Economic data will continue to reinforce the global growth narrative but any chink in the armour may be exploited and have market consequences. Sino/US Trade negotiations will remain the centre of attention. The continued trade war is holding back Asian markets, commodities and trade exposed currencies. The AUD closed around 0.7100, while the NZD has regained 0.6500, but remain extremely vulnerable to the trade situation.

Weekly Market Calendar

15/10 NZ Services PMI, UK House Prices, NZ Dairy Auction, Japan Industrial Production, US Retail Sales, Empire State Manufacturing

16/10 NZ CPI, Australia Consumer Confidence, RBA Minutes, China CPI, UK Employment, EU Trade, German/EU ZEW Sentiment, US Industrial/Manufacturing Production, NAHB House Market Index

17/10 UK CPI, EU CPI, US Weekly Mortgage Applications, US Home Starts, US Building Approvals, FOMC Minutes

18/10 Japan Trade, Australia Employment, UK Retail Sales, US Weekly Jobless Claims, US Leading Index

19/10 NZ Migration, Japan CPI, China GDP, China Retail Sales, China Industrial Production, EU Current Account, US Existing Home Sales

Paul Bettany

Collinson & Co

0406-744-923