Collinsonfx Weekly Marketing Commentary and Calendar

Weekly Market Commentary

Equity markets plunged again overnight, to close the week, after a series of tweets from President Trump. Trump vented big time on twitter, in response to added Chinese tariffs, he ordered US business 'out of China'! US Share markets plummeted in response. Federal Reserve Chairman Powell was also the brunt of the Trump tweet-war. Trump tweeted, 'who is our bigger enemy, Jay Powell or Chairman Xi'? Earlier China had announced further tariffs on US exports, poking the bear, and Trump's response was emphatic. He called for all US Manufacturing companies to leave China! His response was a sledgehammer.

Federal Reserve Chairman Powell was not 'dovish' enough for President Trump, with his actions and intentions. Trump is demanding further rate cuts, in line with other Central Banks, to stimulate the economy. Fortress USA needs a strong domestic economy to win the trade war with China. Chairman Powell should be very worried. The Dollar slipped, with the EUR popping to 1.1135, while the GBP was up to 1.2275. The flagging Dollar allowed the NZD to bounce back towards 0.6400, while the AUD holds below 0.6800, both remaining extremely vulnerable to the US/China trade war.

Market reactions are knee-jerk and the reaction and recovery are slow and steady.

Weekly Market Calendar

26/8 NZ Trade Exports/Imports, German IFO Business Climate, Chicago Fed National Activity, US Durable Goods Orders, Dallas Fed National Activity Index

27/8 Australia Consumer Confidence, German Retail Sales, German GDP, S&P Case Shiller Home Price Index, Richmond Fed Manufacturing Index, US Consumer Confidence

28/8 German Consumer Confidence, US Weekly Mortgage Applications

29/8 NZ Business Confidence, France GDP, German Employment, EU Consumer Confidence, EU CPI, US GDP, US Trade Exports/Imports, US Weekly Jobless Claims, US Pending Home Sale 

30/8 NZ Consumer Confidence, NZ Building Permits, Japan Employment, Japan Retail Sales, Japan Industrial Production, Australia Building Approvals, Japan Home Sales, EU Employment, Italy GDP, US Personal Income/Expenditure, Chicago Purchasing Manager, University of Michigan Sentiment, China Manufacturing/Non-Manufacturing/Composite PMI

Collinson & Co

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