Weekly Market Calendar
Markets closed the week on a high, as Non Farm Payrolls blew past expectations and the headline unemployment rate fell to the 1969 record low. The University of Michigan Economic Sentiment report reflected the bullish sentiment in the US economy. US Bond Yields rose and are now functioning in a 'normal' fashion, rising with demand, rather than Central Bank influence. This will result in inflationary pressures, a bi-product of a growing and healthy economy, which used to be feared? The Labour market news overshadowed the US/China trade news, which was centred around key Trump economic adviser, Larry Kudlow. Kudlow dismissed doubts about the Presidents negotiation resolve, confirming he will walk away from the 'Phase One' agreement, if the Chinese do not fulfil commitments. It appears the announcement of the 'Phase One' agreement was presumptive.
German Industrial Production contracted by 5.3%, in complete contrast to the booming US economy and reflects the static if not negative economic performance of recent times. It appears the Socialist experiment does not produce the same results as the Trump-led Capitalism, that is 'Making America Great Again'! The EUR slipped back to 1.1050, while the GBP rallied to 1.3150, as the Tories move closer to victory in the 'Brexit Election'.
The NZD is out-performing market expectations, as economic news continues to improve and the Government's fiscal policy now compliments the RBNZ monetary policy. The NZD broke back above 0.6550, while the AUD drifted back to 0.6830, underperforming it's Trans-Tasman cousin. The coming week will be dominated by the UK 'Brexit Election' and the Central Bank rate decisions for the Fed and ECB.
Weekly Market Commentary
9/12 China Trade Exports/Imports, NZ Home Sales, NZ Manufacturing, Japan GDP, Japan Trade Exports/Imports, Japan Balance of Payments, German Trade Exports/Imports
10/12 Australia Consumer Confidence, Australia Business Confidence, China CPI, UK GDP, UK industrial/Manufacturing Production, UK Trade Exports/Imports, German/EU ZEW Economic Sentiment, NFIB Small Business Optimism
11/12 NZ Credit Card Spending, Australia Consumer Confidence, NZ Economic Fiscal Update, US CPI
12/12 UK Election, FOMC Rate Decision, German CPI, EU industrial Production, ECB Rate Decision, US Weekly Jobless Claims
13/12 NZ Manufacturing PMI, Japan Tankan Report, Japan Industrial Production, US Retail Sales