The equity markets are maintaining the bull run pinned by the global positive sentiment. Major US equities closed at record high this Friday. S&P 500 and the DOW added 4.85 points and 88.8 points respectively last week compared to the previous week.
Source: GO Markets MT4
The oil and other commodities prices were also somewhat higher since the start of the year 2018. Gold appears to continue its rally backed by the dollar weakness and the volatility in the markets that are encouraging investors to switch to safe havens. The Volatility Index is at 10.16 which is 2.83% rise since Friday.
The US Dollar recorded three consecutive weeks decline. Main drivers of the sell off last week were the slowing down on the purchases of US Treasuries by China and Bank of Japan’s announcement of the reduction in bond buying.
As we move in this week, there is quite of few of items that can test the Dollar. Key events this week is the Industrial Production, Housing Starts and University of Michigan Consumer Sentiment. The economists forecasted moderate improvements in industrial production and consumer sentiment.
Big banks earnings are to be released this week as well which will be eyed for more information on the financial sector.
Tense week in the White House with the “War of Words” over immigration. The row between Trump and the Democrats over immigration reforms is sparking fears of a government shutdown given that deadline to reach a deal is due this week.
In Europe, Germany appears to set foot on a positive note this week. Angela Merkel managed to form a coalition with the SPD and preliminary agreement has been reached. The Euro performed well last week, and the ECB minutes released shows a strong Eurozone economy.
Key data releases this week will be the UK Producer and Consumer Prices, UK Retail Sales and EU Trade Balance and CPI.
We saw some improvement in the November figures for Industrial Production, Retail Sales and Fixed Asset Investments and the December figures are expected to be around the same. Any unexpected deviations will most likely impact the broad Asian region.
Also, China Q4 GDP will be the key release for China.
Source: AFR, SMH, CNBC, BBG, WSJ, CNN, Bloomberg, TradingFloor.com, The Australian, Reuters
|Tuesday, 16th January 2017|
Indicative Index Dividends
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