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Weekly Market Report

13 Jan 2020

13 January 2020

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The Market Last Week

Global equities ended mostly higher last week, after the US announced that it would impose sanctions on Iran instead of military attack thereby easing fears over a further rise in conflict between the two nations.


UK Markets ended the week in negative territory, on rate cut fears.

In the UK, the final Markit services PMI unexpectedly advanced in December.

The Halifax house price index advanced at its fastest pace since 2013 in the October-December 2019 period.

In December, the BRC retail sales across all sectors climbed less than market expectations on a yearly basis.




European Markets ended mostly higher, as tensions between the US and Iran eased.

In the Eurozone, the final Markit services PMI climbed faster-than-initially-estimated in December.

In the Eurozone, the producer price index (PPI) dropped less than market consensus on a yearly basis in November.

Eurozone’s Sentix investor confidence index climbed for the third consecutive month in January, hitting its highest level since November 2018.

In the Eurozone, seasonally adjusted retail sales increased for the first time in three months in November.

Eurozone’s inflation accelerated to a 6-month high level in December.

In the Eurozone, the final consumer confidence index dropped at par with market anticipations in December.

In December, the business climate indicator unexpectedly declined in December.

In the Eurozone, the economic sentiment indicator rose to a 3-month high level in December.

In the Eurozone, the unemployment rate remained steady at its lowest rate since July 2008 in November.

In Germany, the final Markit services PMI advanced more than market expectations in December.

In November, retail sales rebounded on a monthly basis in Germany.

In Germany, seasonally adjusted factory orders dipped more than market anticipations on an annual basis in November.

In Germany, seasonally adjusted trade surplus narrowed more than market expectations in November.

Germany’s seasonally adjusted industrial production rose more than market consensus on a monthly basis in November.




US Markets ended the week in green, as geopolitical tensions faded and after China confirmed the signing of ‘phase 1’ trade deal.

In the US, the final Markit services PMI increased at a faster than expected pace in December.

Trade deficit narrowed to a three-year low in November.

In November, final durable goods orders declined on a monthly basis.

The ISM non-manufacturing PMI rose to a four-month high level in December.

In November, factory orders dropped less-than-expected on a monthly basis in the US.

The MBA mortgage applications jumped on a weekly basis in the week ended 27 December 2019.

The ADP private sector employment advanced by the most in eight months in December.

The US consumer credit climbed less than market forecast in November.

Initial jobless claims fell for the fourth week in a row on a weekly basis for the week ended 3 January.

Average hourly earnings of all employees rose less than market anticipations on an annual basis in December.

Unemployment rate remained unchanged at 50-year low in December. (unchanged)

Non-farm payrolls advanced less than market consensus in December.




Asian Markets ended firmer last week, amid positive developments in the US-China trade war.

In November, seasonally adjusted building approvals declined on an annual basis in Australia.

In Australia, seasonally adjusted trade surplus narrowed in November.

In Australia, the seasonally adjusted retail sales advanced more than market anticipations on a monthly basis in November.

In Japan, the Jibun Bank services PMI unexpectedly declined in December.

Japan’s consumer confidence index increased in December.

In Japan, the Jibun Bank services PMI unexpectedly declined in December.

In Japan, the preliminary leading economic index dropped less than market forecast in November.

In China, the consumer price index (CPI) advanced less than market expectations on an annual basis in December.

In December, the PPI declined more than market anticipations on an annual basis in China.




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Currency Update

The EUR ended lower against the USD, amid tensions in the Middle East and weak domestic economic data.
The British Pound ended weaker against the greenback, amid speculation of an interest rate cut by the central bank.
The US Dollar ended mostly stronger against its major counterparts last week, buoyed by optimism surrounding the Sino-US trade deal.


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BoE Governor Mark Carney signals interest rate cut

Bank of England Governor, Mark Carney, stated that the UK economic growth has been “sluggish” due to the weaker external backdrop and persistent Brexit uncertainties, suggesting that the central bank could cut interest rates soon. He suggested that there was room to at least double the £60 billion of stimulus package to boost growth. However, he warned that slack has been growing and inflation is below target.


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The Week Ahead

Going ahead this week, investors will keep a tab on Eurozone’s CPI, trade balance, industrial production along with Germany’s CPI and ZEW survey indices for further direction. Additionally, the US CPI, PPI, initial jobless claims, retail sales, the Michigan consumer sentiment index, and building permits along with Britain’s trade balance, CPI, NIESR GDP estimate, retail sales, manufacturing and industrial output will keep investors on their toes.


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