Big Data Analytics Solutions | Financial Services in India |Decimal Point Analysis

Weekly Market Report

04 Nov 2019

04 November 2019

Image
Image
Image

The Market Last Week

Global equities ended mostly firmer last week, as hopes of progress in US-China trade deal increased investors' appetite for riskier assets.


UK Markets ended the week in negative territory, amid a slew of disappointing corporate results.

UK’s net consumer credit growth slowed to its lowest level in 5 years in September.

The GfK consumer confidence index dropped more than market forecast in October.

The BRC shop price index dropped on an annual basis in October.

The Markit manufacturing PMI unexpectedly advanced in October.

Mortgage approvals unexpectedly increased in September.

The Nationwide housing prices advanced on a monthly basis in October.




European Markets ended the week mostly higher.

Eurozone’s consumer price index (CPI) rose at par with market consensus on an annual basis in October.

Gross domestic product (GDP) in the Eurozone rose more than market forecast on a quarterly basis in October.

Eurozone’s unemployment rate remained unchanged in September.

The business climate index in the Eurozone unexpectedly advanced in October.

Eurozone’s economic sentiment indicator fell more than market forecast in October.

The consumer confidence index in the Eurozone deteriorated in line with market expectations in October.

Germany’s unemployment rate remained steady in October.

In Germany, the CPI rose in line with market forecast on an annual basis in October.

Germany’s retail sales climbed less than market forecast on a monthly basis in September.

Unemployment rate in Germany remained unchanged in October.

Outgoing European Central Bank President, Mario Draghi, in his last speech, stated that Europe must take a leap forward in integration and create the institutions needed for economic stabilization as monetary policy loses potency. He suggested that a common budget for the EU was necessary so there would be a centralized capacity to stabilize the monetary union.




US Markets ended the week in green, on the back of upbeat US jobs report and growing optimism over US-Sino trade deal.

The US GDP rose more than market expectations on a quarterly basis in 3Q19.

The ADP employment advanced more than market forecast in October.

Non-farm payrolls increased more-than-anticipated in October.

Average hourly earnings rose in line with market consensus on an annual basis in October.

The Markit manufacturing PMI climbed to a 6-month high level in October.

Construction spending rebounded on a monthly basis in September.

Advance goods trade deficit narrowed in September.

The MBA mortgage applications rose in the week ended 25 October 2019.

Personal income climbed meeting market expectations on monthly basis in September.

Personal spending recorded a rise in September.

Pending home sales advanced more than market forecast on a monthly basis in September, notching its highest level since December 2017.

The CB consumer confidence index weakened in October.

Unemployment rate rose meeting market expectations in October.

The ISM manufacturing PMI rose less than market consensus in October.

The Chicago Fed National Activity Index fell more than market consensus in September.

Initial jobless claims rose more-than-anticipated in the week ended 25 October 2019.

The Dallas Fed manufacturing business index dropped more than market forecast in October.

In his post-meeting press conference, the US Federal Reserve (Fed) Chairman, Jerome Powell, indicated that the central bank would keep interest rates steady for the foreseeable future, given the Fed's economic outlook of moderate economic growth, a strong labour market and inflation growing at around 2.0%. Further, he stated that the current stance of monetary policy is “likely to remain appropriate” as long as “the outlook remains broadly in keeping with our expectations.”




Asian Markets ended firmer last week, mirroring gains in their US counterparts.

Japan’s consumer confidence index advanced more than market anticipations in October.

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

Japan’s Tokyo CPI advanced less than market expectations on an annual basis in October.

Annual housing starts in Japan increased more than market forecast in September.

Japan’s vehicle production fell on an annual basis in August.

The unemployment rate in Japan climbed more than market anticipation in September.

Japan’s construction orders declined on a yearly basis on September.

Retail trade in Japan unexpectedly rose on a monthly basis in September.

Australia’s CPI climbed in line with market forecast on an annual basis in 3Q19.

Private sector credit in Australia advanced meeting market forecast on a monthly basis in September.

Australia’s retail sales increased in line with market expectations on a monthly basis in September.

Building permits in Australia rose more-than-anticipated on a monthly basis in october.

Australia’s PPI rose less than market expectations on an annual basis in 3Q19.

The AiG performance of manufacturing index in Australia dropped in October.

China’s NBS manufacturing index unexpectedly declined for a sixth consecutive month in October.

The Caixin manufacturing PMI in China surprisingly advanced in October.

The Bank of Japan, in its latest monetary policy meeting, kept its key interest rate unchanged at -0.10%, as widely expected. However, the central bank indicated that it may lower interest rates in future, amid ongoing global trade tensions.




Image

Currency Update

The EUR ended firmer against the USD, after better-than-expected Eurozone’s GDP data.
The British Pound ended stronger against the greenback, after the European Union extended the Brexit deadline and as UK lawmakers approved a legislation to hold a snap election in December.
The US Dollar ended weaker against its major counterparts last week, after the US Fed cut its interest rate for the third time this year.


Image

Fed cuts interest rate for the third time, holds future rate cuts

The US Fed, in its latest monetary policy decision, cut its benchmark interest rate for the third time this year by 25 basis points to a range of 1.5% to 1.75%, as widely expected and citing slowdown in the US economic growth and ongoing trade tensions. Additionally, the Fed downplayed expectations of further cuts for now and indicated that the central bank may put further monetary policy easing on hold.


Image

The Week Ahead

Going ahead this week, investors will keep a tab on the European Central Bank economic bulletin, the PPI, retail sales data, the Sentix investor confidence index, the Markit manufacturing and services PMIs across the Eurozone along with Germany’s factory orders, industrial production, trade and current balance for further direction. Additionally, the Bank of England's (BoE) interest rate decision and the BoE Governor, Mark Carney’s speech, UK’s Markit construction PMI and the Halifax house prices along with the US factory orders, trade balance, the JOLTS job openings, the Markit services PMI, initial jobless claims and the Michigan consumer sentiment index will keep investors on their toes.


Image

Send us an email on research@decimalpointanalytics.com for your feedback

To make sure you receive all the emails from Decimal Point, please add us in your address book.

Image


Contact Us

5A, B-Wing, Trade Star Building, J. B. Nagar, Andheri-Kurla Road, Andheri (East), Mumbai - 400 059, Maharashtra, India

www.decimalpointanalytics.com | info@decimalpointanalytics.com | +91 22 4919 5200

×

Decimal Point Analytics (DPA) will process the information in this form to share information as requested. By checking the above box you confirm your acceptance to receive the communication. You can unsubscribe any time by clicking the ‘Unsubscribe’ link in the footer of any email you receive from us, or by contacting us at

We use cookies to measure website performance, provide social media features and personalize content.
Close this dialog to confirm you are happy with that, or find out more in the privacy statement.