Collinsonfx Weekly Market Calendar and Commentary

Weekly Market Commentary

Markets rallied to close out an extremely testing week of volatility. Equity markets collapsed after the US Bond Yield curve inverted, signalling a forthcoming recession, triggered by fears over global growth as a result of the US/China trade war. Bond Yields bounced on Friday, along with the equity markets, as confidence starts to recover. The US economy remains strong, supported by the continued strong activity in the consumer sector, allaying global growth fears. Trump has deferred the implementation of the next tranche of tariffs, until December and announced US/China trade negotiations will resume next month.

The AUD remained steady despite the volatility, trading 0.6775, while the NZD drifted back to 0.6420. These trade exposed currencies remain extremely vulnerable to developments on the US/China trade war. The GBP continued to regain ground, jumping to 1.2145, as Brexit activity heats up. This coming week will focus on growth and Central Bank speculation over monetary policy. The Federal Reserve holds the annual Jackson Hole Symposium later in the week and this will be headlined by Federal Reserve Chairman Powell on Friday.

Markets will be looking for a breather with less volatility to calm investors anxiety.

Weekly Market Calendar

19/8 NZ Services PMI, UK House Prices, Japan Trade Exports/Imports, NZ Dairy Auction, EU Current Account, EU CPI

20/8 Australia Consumer Confidence, RBA Minutes, EU Construction

21/8 NZ Credit Card Spending, US Weekly Mortgage Applications, US Existing Home Sales, FOMC Meeting Minutes 

22/8 Australia Services/Manufacturing/Composite PMI, Federal Reserve Symposium Jackson Hole, Japan Manufacturing PMI, France/German/EU Services/Manufacturing/Composite PMI, US Weekly Jobless Claims, US Services/Manufacturing/Composite PMI, Kansas City Fed Manufacturing Activity

23/8 NZ Retail Sales, Japan CPI, Fed Chairman Powell addresses Jackson Hole Symposium, US New Home Sales

Paul Bettany

Collinson & Co

0406-744-923