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Weekly Market Report

30 Mar 2020

30 March 2020

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The Market Last Week

Global equities ended mostly firmer last week, amid optimism surrounding the historic $2 trillion coronavirus stimulus package approved by the White House and the US Senate leaders.


UK Markets ended the week in positive territory, as the Bank of England (BoE) kept its key interest unchanged and hinted at further asset purchases.

UK’s preliminary Markit manufacturing PMI declined at its fastest pace since July 2012 in March.

The balance of firms reporting total order book above normal dropped in March.

The flash Markit services PMI plunged in March, marking its lowest level since the series began in July 1996.

Consumer price inflation slowed as expected in February, reaching its lowest since mid-2016.

The retail price index slowed in February.

The CBI distributive trades survey dropped on a monthly basis in March.

Non-seasonally adjusted output producer price index (PPI) climbed less-than-expected in February.

The DCLG house price index unexpectedly increased in January.

Retail sales unexpectedly declined on a monthly basis in February.

The BoE, in its monetary policy meeting minutes, indicated that there is a risk of longer-term damage to the economy, especially if there are business failures on a large scale or significant increases in unemployment. Additionally, members warned of a sharp reduction in economic as economic consequences of these developments were becoming more visible.




European Markets ended the week on a positive footing, following measures taken by major central banks to curb the economic fallout from coronavirus.

Eurozone’s consumer confidence index declined to a 5-year low level in March.

The preliminary Markit services PMI in the Eurozone tumbled in March.

Eurozone’s preliminary Markit manufacturing PMI dropped less-than-expected in March.

Germany’s preliminary Markit manufacturing PMI eased less than market expectations in March.

The flash Markit services PMI in Germany fell more-than-expected in March.

Germany’s Ifo business climate index unexpectedly dropped in March, hitting its lowest level since July 2009.

The Ifo current assessment index in Germany declined more-than-expected in March.

Germany’s Ifo business expectations index fell more than market forecast in March.

The GfK consumer confidence index in Germany sharply deteriorated in April.




US Markets ended the week in green, after the US Senate approved a massive $2 trillion stimulus bill to curb the economic slowdown.

The US Chicago Fed National Activity Index improved in February.

New home sales declined less than market anticipations on a monthly basis in February.

Durable goods orders unexpectedly climbed in February.

The housing price index advanced in line with market forecast in January.

The annualised gross domestic product (GDP) advanced in line with market anticipations on a quarterly basis in 4Q19.

Goods trade deficit narrowed in February.

Personal income rose more than market expectations on a monthly basis in February.

Personal spending advanced in line with market consensus in February.

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

The Richmond Fed manufacturing index advanced less than market forecast in March.

The Markit services PMI fell more than market forecast in March.

The MBA mortgage applications plunged on a weekly basis in the week ended 20 March 2020.

The US Kansas Fed manufacturing activity index dropped more-than-expected in March.

Initial jobless claims surged more than market forecast on a weekly basis in the week ended 20 March 2020.

The Michigan consumer sentiment index dropped to its lowest level since October 2016 in March.

The US Federal Reserve (Fed) Chairman, Jerome Powell, in his speech, pledged to provide an unlimited lending to support the economy as long as it is damaged by the viral outbreak. He further stated that the economy might be in recession due to the coronavirus pandemic, but has a strong potential to rebound, if the virus is contained fairly quickly.




Asian Markets ended firmer last week, on hopes of additional stimulus actions.

Australia’s preliminary Commonwealth Bank manufacturing PMI dropped less-than-expected in March.

The preliminary Commonwealth Bank services PMI in Australia slid more than market forecast in March.

Japan’s preliminary Jibun Bank manufacturing PMI eased more than market forecast in March.

The coincident index in Japan advanced in January.

Japan’s final leading economic index dropped in January.

The corporate service price index in Japan increased less than market forecast on an annual basis in February.




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Currency Update

The EUR ended firmer against the USD in the last week, on the back of stimulus measures from the US government.
The British Pound ended stronger against the greenback in the previous week, amid hopes that economic stimulus from the BoE would ease investor worries.
The US Dollar ended weaker against its major counterparts last week, after the US initial jobless claims surged to a record high level.


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BoE keeps interest rate steady

The BoE, in its latest monetary policy decision, kept its benchmark interest rate unchanged at 0.1% and maintained the quantitative easing at £645 billion. However, the central bank stated that it was ready to act again, if needed.


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The Week Ahead

Going ahead this week, investors will keep a tab on the US consumer confidence index, nonfarm payrolls, unemployment rate, ADP employment change, initial jobless claims, factory orders, the Markit manufacturing and services PMIs along with the UK’s GDP, the Nationwide housing prices, consumer credit, mortgage approvals, the GfK consumer confidence index, the Markit manufacturing and services PMIs for further indication. Also, Eurozone’s CPI, economic sentiment, business climate and consumer confidence indices, the Markit manufacturing and services PMIs across the Eurozone along with Germany’s CPI, unemployment rate and retail sales will be on investors’ radar.


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