CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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.
  • 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). 

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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

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