Weekly Market Commentary
US equity markets closed the week, breaking further record highs. President Trump tweeted he had 'a very good talk with President Xi', confirming the 'Phase One' trade agreement was already under way and that progress was being made on Hong Kong! Markets blasted into yet more record highs confirming the 'Santa Rally'. In the UK, the newly re-elected PM Boris Johnson tested his new massive majority in the British Parliament, passing legislation for Brexit. The GBP remains under pressure, trading 1.3030, as negotiations with the EU over Brexit and a trade deal enter unsettled territory, while the EUR fell to 1.1070.
Commodity currencies have gained from progress on global trade and improving local economic data. The AUD is now testing 0.6900, while the NZD attempts to regain 0.6600, as economic sentiment improves. The US/China trade deal settles existing supply chains, while the mouth watering prospects of UK trade deals with Australia and NZ, bring exciting prospects for the coming year.
Christmas week will see much reduced trading volumes, as the world celebrates the holiday season. The 'Santa Rally' is 'icing on the cake' for equity markets and the coming week will be one of positive reflection and speculation for what 2020 holds!?
Weekly Market Calendar
23/12 Japan Leading Index, Canada GDP, Chicago Fed National Activity Index
24/12 US New Home Sales, Bank of Japan Minutes, US Durable Goods Orders, Richmond Fed National Activity
25/12 Christmas
26/12 Boxing Day, Japan House Sales, US Weekly Mortgage Applications, US Weekly Jobless Claims
27/12 China Current Account, German Retail Sales, Japan Industrial Production