What mattered last week and a preview of the week ahead 23rd March

What mattered last week:

An extreme week of volatility as U.S. equity market fell ~15% as the spread of Covid-19 continued.
The impact of Covid-19 via border shutdowns, social distancing measures as well as the obvious impact on health impact presents a huge challenge and likely to result in a recession in several countries.
Central banks and governments responded by slashing interest rates, resuming/starting Quantitative Easing (QE) programs and boosting/announcing fiscal stimulus packages.

March 22, 2020 6:20 PM

What mattered last week:

  • An extreme week of volatility as U.S. equity market fell ~15% as the spread of Covid-19 continued.
  • The impact of Covid-19 via border shutdowns, social distancing measures as well as the obvious impact on health impact presents a huge challenge and likely to result in a recession in several countries.
  • Central banks and governments responded by slashing interest rates, resuming/starting Quantitative Easing (QE) programs and boosting/announcing fiscal stimulus packages.
  • Yields in the U.S. 10-year bond fell back to near 0.84%, while gold closed ~$1500, after finding support near $1450.
  • Crude oil futures fell to near U.S$20.00/bbl a level not seen since 2002, before a modest bounce into the end of the week.
  • Locally, the ASX200 finished the week down another 13%, closing just above 4800.
  • In FX, the AUDUSD closed almost -6% lower near .5800c but not before trading to a new cycle low at .5510. 

For the week ahead, the key events are:

Australia: CBA business conditions PMI’s (Tuesday).

New Zealand: Balance of trade (Wednesday), ANZ Roy Morgan Consumer confidence (Friday).

China: Industrial profits (Friday).

Japan: Jibun bank business conditions PMI’s (Tuesday), BoJ Monetary Policy meeting minutes (Wednesday).

U.S: Markit business conditions PMI’s, new home sales (Tuesday), durable goods (Wednesday), jobless claims (Thursday), personal spending and income (Friday)

  • Jobless claims (Thursday): A large rise in jobless claims is expected.

Canada: Nothing of note.

Euro Area: German and EA Markit flash PMI’s (Tuesday), GFK German consumer confidence (Thursday).

UK: Markit/CIPS business conditions PMI’s (Tuesday), inflation (Wednesday), retails sales and Bank of England meeting (Thursday). 

Related tags: Australia Canada China Europe Japan UK US New Zealand

Latest market news

View more
USD/JPY 155 in focus around US inflation, BOJ meeting: The Week Ahead
Today 06:01 AM
Crude oil spikes on reports of Israeli airstrike, gold threatens new high
Today 03:35 AM
US dollar taps 106 as US 2yr eyes break of 5%, gold rangebound: Asian Open
Yesterday 11:27 PM
S&P 500 analysis: Will the recovery hold as focus turns to tech earnings?
Yesterday 04:46 PM
Nasdaq 100 Forecast: QQQ rises as chip stocks rebound, Netflix earnings in focus
Yesterday 01:06 PM
EUR/USD, Oil Forecast: Two trades to watch
Yesterday 08:33 AM

Open an account today

Experience award-winning platforms with fast and secure execution.
Open account

Web Trader platform

Our sophisticated web-based platform is packed with features.
Learn more
Economic Calendar

Latest Australia articles

aus_04
AUD/USD weekly outlook: AU CPI, AUD forward returns for Easter
By:
Matt Simpson
March 24, 2024 08:00 AM
    aus_10
    AU employment data leaves no room for RBA easing: AUD/USD, AUD/CHF
    By:
    Matt Simpson
    March 21, 2024 01:54 AM
      aus_03
      Big session for ASX bulls as uptrend support gives way
      By:
      David Scutt
      March 14, 2024 10:07 PM
        aus_01
        AUD/USD: Growing risk Australia’s economy went backwards in late 2023
        By:
        David Scutt
        March 4, 2024 06:05 AM

          This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

          StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

          In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

          StoneX Financial Pte. Ltd. is not under any obligation to update this report.

          Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.cityindex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.