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Weekly Market Report

23 Dec 2019

23 December 2019

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The Market Last Week

Global equities ended firmer last week, amid positive global momentum, following the conclusion of the US-China ‘phase one’ trade deal.


UK Markets ended the week in positive territory, amid weakness in the British Pound after Prime Minister, Boris Johnson’s hard line in talks with the European Union (EU) stoked fears of a no-deal Brexit.

In the UK, the ILO unemployment rate remained steady in August-October 2019 period.

The CBI industrial trends survey orders dropped in December.

The Rightmove house price index fell on a monthly basis in December.

Average earnings including bonus advanced less than market expectations on an annual basis in the August-October 2019.

UK’s consumer price index (CPI) climbed more than market anticipations on an annual basis in November.

Non-seasonally adjusted output producer price index (PPI) advanced on an annual basis in November.

The retail price index rose more than market estimates on a monthly basis in November.

The house price index advanced less than market forecast on a yearly basis in October.

UK retail sales unexpectedly declined in November.

The GfK consumer confidence index fell less than market expectations in December.

The flash manufacturing PMI unexpectedly declined to its lowest level in 41-months in December.

The preliminary Markit services PMI unexpectedly declined in December.

The gross domestic product (GDP) rose more than market consensus on a quarterly basis in 3Q19.




European Markets ended the week on a positive footing.

In the Eurozone, seasonally adjusted trade surplus widened more than market anticipations in October.

Eurozone’s preliminary services PMI rose more than market anticipations in December.

In the Eurozone, the flash manufacturing PMI unexpectedly declined to a 2-month low level in December.

Eurozone’s CPI rose as initially estimated in November.

In the Eurozone, the seasonally adjusted current account surplus unexpectedly widened in October.

In the Eurozone, the consumer confidence index unexpectedly fell in December.

Germany’s Markit services PMI advanced in line with market consensus in December.

In Germany, the preliminary manufacturing PMI unexpectedly dropped in December.

In Germany, the PPI declined more than market forecast on an annual basis in November.

In December, the Ifo current assessment index advanced more than market anticipations in Germany.

In Germany, the Ifo business expectations index rose to a six-month high level in December.

The German Ifo business climate index climbed in December.




US Markets ended the week in green, after the US and China reached a preliminary trade deal wherein the US agreed to rollback tariffs imposed on Chinese goods.

In the US, industrial production climbed to 2-year high level on a monthly basis in November.

Manufacturing production climbed on a monthly basis in November.

The JOLTs job openings unexpectedly rose in October.

The housing starts rose more than market anticipations in November.

Building permits rose to a 12-year high level in November.

The MBA mortgage applications declined on a weekly basis for the week ended 13 December.

The NY Empire State manufacturing index rose in December.

Initial jobless claims dropped from more than a two-year high level for the week ended 13 December.

The Philadelphia Fed manufacturing survey fell to its lowest level in six months in December.

The preliminary Markit manufacturing PMI dropped in line with market forecast in December.

In December, the housing market index unexpectedly advanced in the US.

Existing home sales dropped more than expected on a monthly basis in November.

Consumer spending increased at its fastest pace in four months in November.

The GDP annualised rose at par with market anticipations in 3Q19.

Personal spending rose on a monthly basis in November.

Personal income rose more than expected on a monthly basis in November.

The final reading of Michigan consumer sentiment rose to its highest level in seven months in December.




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

In Australia, the Westpac leading index dropped on a monthly basis in November.

In Australia, seasonally adjusted unemployment rate unexpectedly dropped in November.

Australia’s home loan approvals advanced on a monthly basis in October.

Japan posted a merchandise trade deficit in November.

The Reserve Bank of Australia (RBA), in its meeting minutes, showed that the central bank was “prepared to ease monetary policy further if needed.” Additionally, minutes indicated that the RBA will “reassess” the economic outlook at its February 2020 meeting, when the central bank would prepare its updated forecasts.

In Japan, national CPI rose more than market expectations on an annual basis in November.

The Bank of Japan, in its policy meeting, kept its interest rate unchanged at -0.1% and maintained its upbeat assessment on the economy.




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Currency Update

The EUR ended lower against the USD last week, amid renewed Brexit concerns.
The British Pound ended weaker against the greenback in the previous week, following fears of a chaotic British exit from the European Union.
The US Dollar ended mixed against its major counterparts last week, as optimism over US-China trade deal was offset by impeachment proceedings against the US President, Donald Trump.


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BoE kept its interest rate unchanged

The Bank of England (BoE), in its latest monetary policy meeting, kept its key interest rate steady at 0.75% by a majority vote of 7-2, as policymakers focus on the upcoming Brexit deadline. The central bank projected further sluggish growth in inflation remaining below its target levels till mid-2021. The officials downgraded their growth projection for the fourth quarter to 0.1% from 0.2%. The minutes of the monetary policy meeting showed that the members believe that the policy would require limited gradual tightening to maintain inflation sustainably at the 2% target.


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The Week Ahead

Going ahead this week, investors will keep a tab on US new home sales, durable goods order, initial jobless claims, mortgage applications and the Richmond Fed manufacturing index. Additionally, Eurozone’s economic bulletin will also be on investors' radar.


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