| Weekly Market Commentary US markets closed out the week at record levels, with robust economic data supported by the signing of the landmark 'Phase One' US/China trade agreement. Global markets are starting to feed off the US economy, as the global supply chain is reassured, boosting global sentiment. Market confidence is on the rise and markets are acting accordingly, with record highs every other day! Chinese Industrial Production and Retail Sales beat expectations, while GDP growth was in line with expectations, giving the commodity currencies some solace. The NZD held above 0.6600, despite a strong Dollar, but the AUD continued to drift back to 0.6875. The AUD has suffered speculation surrounding a possible RBA interest rate cut, to counter the economic impact of the devastating bush fires and this will be measured in time. The Australian narrative will move on from the bush fires and focus on domestic data and global markets.
US Industrial and Manufacturing Production was mixed and the University of Michigan Economic Sentiment Report was steady. All signs point to a big and progressive economic year for the US lead global economy, with trade agreements on a bi-lateral basis, rather than the multi-lateral distemper, that China has gained from. The existing supply chain has gained some reassurances, with the signing of the 'Phase One' US/China Trade agreement and markets are likely to welcome further trade agreements between the UK, US and Commonwealth nations, during the 2020 year. The EUR fell back below 1.1100, after disappointing inflation data, while the GBP was hit by a rising reserve and traded 1.3015.
The coming week will be fed by global economic data releases, but may well be subjected to Geo-Political events from the US and around the world. Weekly Market Calendar 20/1 UK House Prices, Japan industrial Production, German PPI
21/1 Bank of Japan Rate Decision, NZ Services PMI, UK Employment, EU/German ZEW Economic Sentiment
22/1 Australia Consumer Confidence, Canada CPI, Chicago Fed National Activity Index
23/1 US Existing Home Sales, US House Prices, Japan Trade Exports/imports, Australia Employment, Japan Leading Index, ECB Rate Decision, US Weekly Jobless Claims
24/1 EU Consumer Confidence, US Leading Index, NZ CPI, Australia Services/Manufacturing/Composite PMI, Bank of Japan Minutes, France/German/UK/EU Services/Manufacturing/Composite PMI, US Services/Manufacturing/Composite PMI
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