Weekly Market Commentary US Markets slipped from record highs, amidst fears of rising 'coronavirus' infections and deaths. The crises is considered 'under control' and 'contained' as markets focus back on economic fundamentals, thereby charging to new record highs in equities. The problem is the 'coronavirus' is spreading at an alarming rate, with stories from China triggering global anxiety and apprehension. The scale of the crises has the potential to become a catastrophe of global proportions and reassurances must be credible?
US Non Farm Payrolls beat expectations, coming in way above expectations, adding 225,000 jobs. The headline Unemployment rate ticked up to 3.5%, but this was a positive, as the participation rate rose to 63.4%. US economic data continues to reflect the booming economy and markets. The USD continued to rally, with the EUR falling to 109.45, while the GBP slipped below 1.2900. Economic fundamentals point to a stronger Dollar, while the interest rate differential, provides further investment incentive.
The 'Coronavirus' crises will continue to dominate global markets and this will begin to impact historical economic data, particularly in the form of market sentiment. Weekly Market Calendar 10/2 NZ House Sales, US Weekly Mortgage Applications, Japan Trade, Japan Current Account, China CPI
11/2 Australia Consumer Confidence, UK GDP, UK Industrial/Manufacturing Production, UK Trade Exports/Imports, NFIB Small Business Optimism
12/2 NZ Credit Card Spending, RBNZ OCR, EU Industrial Production
13/2 US Budget, German CPI, US CPI, US Weekly Jobless Claims
14/2 NZ Food Prices, EU GDP, EU Employment, EU Trade Exports/Imports, US Retail Sales, US Industrial/Manufacturing Production, University of Michigan Sentiment
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