| Weekly Market Commentary Non Farm Payroll beat expectations and Chinese officials assured markets the US/China Trade deal was on track, sparking a massive rally in US equities. The rally in share markets had been hampered by rumours of Chinese reticence, regarding the 'Phase One' Trade Deal. These negative rumours were dispelled overnight, by both sides of the negotiations. The surge in confidence was reflected in equity markets, aided by a robust Non Farm Payrolls number and strong upward revisions of the August and September numbers.
This coming week will be dominated by global economic data releases and Central Bank decisions from the RBA and the Bank of England. No action is expected, although QE is expected to be reinforced. The UK will be pre-occupied with the General Election set down for 12th of December. Europe will be adjusting to the impact of a probable Brexit if the Polls are correct. The GBP begins the week trading 1.2935, while the EUR has benefited a softer reserve, pushing up to 1.1165.
Trade exposed, commodity currencies have been gaining, on the back of more certainty over the 'Phase One' Trade deal. The AUD has regained 0.6900, while the NZD has seen an improvement in local sentiment, jumping to 0.6425. The RBA will meet this week and announce their latest rate decision, which is expected to be hold at the current record low rate of 0.75%, but reaffirm generous QE. Strong economic sentiment is engulfing world markets, which should add to recent positive trading, although unexpected events do tend to surprise. |