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Weekly Market Report

06 Apr 2020

06 April 2020

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The Market Last Week

Global equities ended lower last week, amid growing concerns over the impact of coronavirus pandemic on global economy.


UK Markets ended the week in negative territory, after several banks in the UK cancelled dividend payments and suspended buybacks.

UK’s economic growth stagnated in the fourth quarter of 2019.

The final manufacturing PMI dropped to a 3-month low level in March.

Current account deficit narrowed more than market expectations in 4Q19.

The BRC shop price index declined on a yearly basis in February.

The final Markit services PMI fell in March, recording its lowest level since the survey began in July 1996.

The GfK consumer confidence index dropped less than market forecast in March.

The Nationwide house prices unexpectedly advanced in March, registering its fastest growth since January 2018.

Mortgage approvals climbed in February, recording its highest level since January 2014.




European Markets ended the week on a weaker footing, amid signs of significant economic damage from the coronavirus pandemic.

Eurozone’s consumer price inflation slowed more than market forecast on an annual basis in March.

The producer price index (PPI) in the Eurozone declined at a faster than expected pace in February.

Eurozone’s final Markit services PMI dropped more-than-anticipated in March.

In the Eurozone, the consumer confidence index declined to its lowest level since 2014 in March.

Eurozone’s economic sentiment indicator declined less than market forecast in March.

The final manufacturing PMI in Eurozone dropped to its lowest reading in 92 months in March.

Eurozone’s unemployment rate unexpectedly eased in February, reaching its lowest rate since March 2008.

Seasonally adjusted retail sales in the Eurozone rose more than market forecast in February.

Germany’s unemployment rate remained unchanged in March.

Retail sales in Germany rose on a monthly basis in February.

Germany’s final manufacturing PMI declined more-than-expected in March.

The final Markit services PMI in Germany eased in March.

Germany’s consumer price inflation slowed as expected on an annual basis in March.




US Markets ended the week in red, after US President, Donald Trump warned that up to 240,000 people could die in the US from Covid-19.

The US final Markit manufacturing PMI dropped to its lowest level since August 2009 in March.

The consumer confidence index deteriorated to its lowest level in 32 months in March.

Construction spending unexpectedly eased on a monthly basis in February.

The ISM manufacturing activity index dropped less-than-expected in March.

Seasonally adjusted initial jobless claims climbed in the week ended 27 March 2020.

Factory orders remained flat on a monthly basis in February.

Non-farm payrolls declined more-than-expected in March.

The final Markit services PMI dropped in March.

Unemployment rate advanced more-than-expected in March.

The Dallas Fed manufacturing index unexpectedly declined in March.

The ISM-NY non-manufacturing PMI eased less than market consensus in March.

Average hourly earnings of all employees advanced on a monthly basis in March.

Final durable goods orders advanced on a monthly basis in February.

Trade deficit narrowed to its lowest level since September 2016 in February.

The Chicago Purchasing Managers’ Index dropped less-than-expected in March.

The MBA mortgage applications advanced on a weekly basis in the week ended 27 March 2020.

Pending home sales unexpectedly rose on a monthly basis in February.




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

The AiG performance of manufacturing index in Australia climbed in March.

Australia’s building permits rebounded on a monthly baiss in February.

In Australia, private sector credit demand rose on an annual basis in February.

Australia’s HIA new home sales unexpectedly jumped on a monthly basis in February.

Australia’s Commonwealth Bank manufacturing PMI dropped in March.

Australia’s seasonally adjusted retail sales advanced more than market forecast in February.

China’s NBS manufacturing PMI climbed more-than-anticipated in March.

The non-manufacturing PMI in China jumped more than market forecast in March.

China’s Caixin manufacturing PMI jumped more than market expectations in March.

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

Housing starts in Japan fell less-than-expected on a yearly basis in February.

Japan’s Jibun Bank manufacturing PMI dropped in line with market forecast in March.

In Japan, the unemployment rate remained unchanged in February.

Japan’s industrial production climbed on a monthly basis in February.




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Currency Update

The EUR ended lower against the USD last week, after Eurozone’s manufacturing activity deteriorated to its lowest reading in 92 months.
The British Pound ended weaker against the greenback last week, as Britain’s economic growth stagnated in the fourth quarter of 2019.
The US Dollar ended stronger against its major counterparts last week, as global recession fears caused by the coronavirus outbreak, increased demand for the safe haven asset.


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RBA rules out negative interest rates

The Reserve Bank of Australia (RBA), in its latest monetary policy meeting minutes, indicated that officials do not favour negative interest rates and it is likely that the cash rate would remain at a very low level for an extended period. The central bank cautioned that the economy would witness a “very material contraction” due to coronavirus and could potentially continue beyond the June quarter. Also, members indicated that there would be significant job losses over the months ahead.


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The Week Ahead

Going ahead this week, investors will keep a tab on the US FOMC meeting minutes, CPI, the JOLTS job openings, the PPI, consumer credit, the MBA mortgage applications, initial jobless claims, the Michigan consumer sentiment index and monthly budget statement for further direction. Additionally, Eurozone’s Sentix investor confidence index, Germany’s CPI, factory orders, industrial production, trade and current account balances along with UK’s GDP, construction PMI, Halifax house prices, the RICS house price balance, trade balance, industrial and manufacturing production would garner significant amount of investor attention.


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