| Weekly Market Commentary Records tumbled on markets again Friday, to close out an extremely volatile week. Oil plunged 10% for the day, US 10 year Bonds crashed to record lows below 0.7%, while Gold and the Yen rallied strongly. Safe Haven flows were the order of the day, with Gold and the Yen spiking, while a failure of OPEC PLUS to reach an agreement to cut production, ensured big losses in Oil prices.
US Equities tumbled throughout the day, as the coronavirus panic continued to spread throughout markets, but a late rally gave markets hope for the new week!? US Non Farm Payrolls beat expectations and headline Unemployment fell to a record equalling 3.5%. US economic data has not yet been impacted by the flow through of coronavirus infected numbers, so we shall see the impact of historical economic data on markets, in the coming week.
The spread of the virus continues globally, although the Chinese genesis appears to be slowing, suggesting some sort of containment. The uncertainty and fear, that has driven the market carnage, would dissipate if markets perceive control and confidence. The strong rally into the US market close, Friday, may bode well for the coming week? US Bonds have driven the Dollar lower, with the EUR trading up to 1.1300, while the Yen rallied to 105.25.
Commodity currencies also benefitted the flagging reserve, with the AUD trading up to 0.6635, while the NZD pushed back to 0.6350. These trade exposed currencies remain extremely vulnerable, due to the reliance on the Chinese supply chain and still operate at a significant discount to US Bond Rates.
The 'Coronavirus' and the impact on markets will continue to dominate global markets. Weekly Market Calendar 9/3 China Trade Exports/Imports, NZ Home Sales, Japan GDP, Japan Trade, Japan Current Account, Japan GDP, German Industrial Production, German Trade, Current Account Exports/Imports
10/3 NZ Manufacturing PMI, Australia Consumer Confidence, Australia Business Confidence, China CPI/PPI, EU GDP, EU Employment, NFIB Small Business Optimism
11/3 Australia Consumer Confidence, UK Industrial/Manufacturing Production, UK Trade Exports/Imports, UK Construction, US Weekly Mortgage Applications, US CPI
12/3 US Budget, EU Industrial Production, US Weekly Jobless Claims, ECB Rate Decision
13/3 NZ Manufacturing PMI, NZ Food Prices, German CPI, University of Michigan Sentiment
|