A review of the week past and the week ahead 21st of December

What mattered last week:

• The S&P500 made fresh all-time highs on hopes of a fiscal stimulus deal before Christmas and vaccine rollouts.
• Despite new lockdowns in parts of Europe, the U.S, and Australia and amid renewed U.S- China tensions.
• U.S economic data was mixed. Industrial production beat expectations while retail sales disappointed.
• Volatility, as measured by the VIX index closed lower at 21.6%.
• U.S. 10-year yields closed 3bp higher, near 0.94%.
• Gold closed 2.29% higher near $1881.00.
• Crude oil locked in seven straight weeks of gains, closing near $49.24/bbl.
• The ASX200 closed modestly higher at 6675.5 as surging commodity prices and good economic data offset a coronavirus outbreak in Sydney.
• In FX, the AUDUSD closed the week near .7625, supported by surging commodity prices, good economic data, and broad-based U.S. dollar weakness.

For the week ahead, the key events are:

Australia: Retail sales preliminary (Tuesday), private sector credit (Wednesday).

New Zealand: Nothing of note.

China: Nothing of note.

Japan: BoJ meeting minutes (Wednesday), employment (Friday).

U.S: Consumer confidence (Tuesday), personal income, and personal spending (Wednesday), durable goods (Thursday).

Canada: GDP (Wednesday), building permits (Thursday).

Euro Area: German Consumer confidence (Tuesday).

UK:Nothing of note.