What mattered last week and a preview of the week ahead 11th November

What mattered last week:

U.S. stocks finished higher for a fifth straight week on the back of progress on U.S. – China trade negotiations, talk of tariff rollbacks and better than expected U.S. September quarter earnings.
Which prompted a flow of money out of safe-haven assets including gold and bonds.
Gold finished the week -3.50% lower near $1460. Yields on U.S. 10 year bonds closed near 1.95%, to record their highest close in 14 weeks.
The RBA left interest rates on hold at 0.75% as expected and maintained a clear easing bias.
In its Statement on Monetary Policy, the RBA downgraded GDP and inflation forecasts, a combination that does little to improve the prospects for the economy to return to full employment or the RBA to achieve its inflation target.
Locally, the ASX200, reversed most of the previous weeks fall to close +0.80%, near 6725 as the choppy sideways price action, driven by sector rotation continued.
Economic downgrades by the RBA saw the AUDUSD ease from recent highs to close the week near .6850.

For the week ahead, the key events are:

Australia: NAB business confidence (Tuesday), Westpac consumer confidence and wage price index (Wednesday), employment (Thursday).

Employment (Thur): The market is looking for a 15k rise in employment which won’t be enough to prevent the unemployment rate from ticking back up to 5.3%.

New Zealand: Business inflation expectations (Tuesday), RBNZ interest rate meeting (Wednesday), Business NZ PMI (Friday).

RBNZ interest rate meeting (Wed): With the market already priced for 21bp of easing the RBNZ is expected to cut the OCR by 25bp to 0.75%.

China: Fixed asset investment, industrial production, retail sales, new yuan loans, total social financing (Thursday).

Japan: GDP Q3 (Thursday), industrial production (Friday).

U.S.: CPI (Thursday), retail sales and industrial production (Friday).

Retail sales (Fri): Retail sales are expected to rise by +0.2% in October after falling by -0.3% in September.

September quarter earnings reporting season winds up this week with reports from Walmart, Cisco, and Walt Disney.

Canada: New housing price index (Friday).

Euro Area: EA and German ZEW economic survey (Tuesday), EA industrial production (Wednesday), EA and German GDP Q3 (Thursday), balance of trade (Friday).

UK: GDP, industrial production (Monday), employment (Tuesday), CPI and PPI (Wednesday), retail sales (Thursday).

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