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Weekly Market Report

03 Feb 2020

03 February 2020

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The Market Last Week

Global equities ended lower last week, after the the World Health Organization declared the coronavirus outbreak a global health emergency.


UK Markets ended the week in negative territory, amid strength in the British Pound and mounting concerns over the spread of coronavirus.

In the UK, the BRC shop price index fell on a yearly basis in December.

The Nationwide house prices climbed at its fastest annual rate since November 2018 in January.

The GfK consumer confidence index rose in line with market expectations in January.

Consumer credit advanced more-than-anticipated in December.

Mortgage approvals climbed to a two-and-a-half year high in December.

The Bank of England (BoE), in its latest monetary policy meeting, kept its key interest rate steady at 0.75% and its asset purchase facility at £435.0 billion, as widely expected. Further, the central bank slashed its growth forecast for the British economy for this year and next, amid ongoing Brexit uncertainties and a weaker global growth outlook.




European Markets ended the week on a negative footing, amid concerns over Britain’s exit from the European Union.

Eurozone’s economic growth slowed on a quarterly basis in 4Q19.

The business climate indicator in the Eurozone recorded a drop in January.

Eurozone’s unemployment rate declined to its lowest level since May 2008 in December.

The economic sentiment index in the Eurozone improved in January.

Eurozone’s consumer price index (CPI) advanced in line with market forecast on an annual basis in 4Q19.

Germany’s Ifo business climate index unexpectedly declined in January.

The Ifo current assessment index in Germany rose less than market expectations in January.

Germany’s Ifo expectations index unexpectedly dropped in January.

In Germany, retail sales slid more than market forecast in December.

Germany’s unemployment rate remained unchanged in January.

The GfK consumer confidence index in Germany unexpectedly rose in February.

Germany’s CPI rose as expected on a yearly basis in January.




US Markets ended the week in red, amid worries about the impact of coronavirus on the US economy.

In the US, new home sales unexpectedly decreased for the third consecutive month in December.

Initial jobless claims fell less than market forecast in the week ended 24 January 2020.

Personal income rose less-than-expected on a monthly basis in December.

Pending home sales unexpectedly dropped on a monthly basis in December.

The Chicago Purchasing Managers’ Index declined to its lowest level since December 2015 in January.

Gross domestic product (GDP) advanced in line with market forecast for the fourth quarter of 2019.

The Michigan consumer sentiment index climbed to its highest level in eight months in January.

Personal spending rose in line with market forecast in December.

Durable goods orders rebounded in December.

The Richmond Fed manufacturing index climbed more than market expectations in January.

The consumer confidence index jumped to its highest level in five months in January.

The MBA mortgage applications rebounded in the week ended 24 January 2020.

Trade deficit widened less than market forecast in December.




Asian Markets ended weaker last week, mirroring losses in their US counterparts.

Australia’s business confidence index dropped to its lowest level since July 2013 in December.

The business conditions index in Australia fell in December.

Australia’s AiG performance of manufacturing index declined in January, marking its lowest reading since 2015.

Building permits in Australia fell less than market forecast on a monthly basis in December.

Australia’s Westpac consumer confidence index rebounded on a monthly basis in December.

Australia’s CPI accelerated on an annual basis in 4Q19.

Australia’s producer price index (PPI) advanced in line with market anticipations on a yearly basis in 4Q19.

Private sector credit in Autralia remained unchanged on a monthly basis in December.

Japan’s CPI rose less than market forecast on a yearly basis in January.

Unemployment rate in Japan unexpectedly dropped in December.

Japan’s monthly retail trade surprisingly climbed in December.

Industrial production in Japan rebounded on a monthly basis in December.

Japan’s construction orders rebounded on an annual basis in December.

Annual housing starts in Japan unexpectedly rose in December.

China’s non-manufacturing PMI rose in January.

The Caixin manufacturing PMI in China fell more than market expectations in January.




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Currency Update

The EUR ended firmer against the USD last week, as investors grew cautiously optimistic about the outlook for the euro area.
The British Pound ended stronger against the greenback in the previous week, after the BoE left its key interest rates unchanged.
The US Dollar ended mostly weaker against its major counterparts last week.


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Fed hints to keep interest rates unchanged throughout 2020

The US Federal Reserve (Fed), in its latest policy meeting, kept its key interest rate steady at 1.75%, as widely expected and indicated that interest rates will remain unchanged throughout 2020. Further, the Fed reiterated that the labour market continues to remain robust and that economic activity has been rising at a moderate pace.


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The Week Ahead

Going ahead this week, investors will keep a tab on the European Commission’s economic growth forecast, PPI, retail sales, the Markit manufacturing and services PMIs across the Eurozone along with Germany’s factory orders, industrial production, trade and current account balances for further direction. Additionally, the US factory orders, ADP employment change, trade balance, non-farm payrolls, unemployment rate, the Markit manufacturing and services PMIs along with UK’s Markit manufacturing, services and construction PMIs will be on investors' radar.


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