A review of the week past and the week ahead 18th of January

What mattered last week:

The S&P500 closed the week down -1.5%, falling from record highs the previous week.
On fears, the spread of the more contagious UK, South African strands of the coronavirus will see longer lockdowns.
And that President-elect Joe Biden's $1.9 trillion fiscal stimulus plan will see interest rates rise.
Economic data was disappointing as initial jobless claims came in higher than forecast.
Volatility, as measured by the VIX index rose to 24.3.
U.S. 10-year yields consolidated the prior week's gains closing near 1.08%.
Gold fell -1.12%, to close near $1828.
Crude oil closed mostly unchanged at $52.42/bbl, supported by Saudi output cuts.
The ASX200 eased -0.63% lower to close at 6715.4.
The AUDUSD fell -0.75% to close near .7700, as the US dollar clawed back some of its recent losses.

For the week ahead, the key events are:

Australia: HIA new home sales (Tuesday), Westpac consumer confidence (Wednesday), labour force (Thursday), Markit manufacturing PMI (Friday).

Labour force (Thursday): Employment is expected to rise by 50k with the unemployment rate falling from 6.8% to 6.7%. The participation rate is expected to remain at historical highs at 66.1%.

New Zealand: NZIER business confidence and global dairy trade (Tuesday), business NZ PMI and Q4 inflation (Friday).

China: Industrial production, retail sales, Q4 GDP, fixed asset investment, and employment (Monday), PBOC interest rate meeting (Wednesday).

Q4 GDP (Monday): Q4 GDP is expected to show a 3.2% q/q gain resulting in GDP growth accelerating to 6.1% y/y from 4.9%.

Japan: Balance of trade, BoJ interest rate decision (Thursday), inflation, and Jibun bank flash PMI’s (Friday).

U.S: Joe Biden's inauguration (Wednesday), building permits, housing starts, jobless claims (Thursday), Markit PMI’s and homes sales (Friday).

US earnings season continues with reports due from companies including Netflix, Bank of America, Goldman Sachs, and Morgan Stanley.

Canada: Housing starts, (Tuesday), inflation and BoC interest rate meeting (Wednesday) retail sales (Friday).

Euro Area: ECB interest rate meeting (Thursday), German and EA Markit flash PMI’s (Friday).

ECB interest rate meeting (Thursday): The ECB is expected to leave monetary policy unchanged at this meeting after extending its quantitative easing and cheap bank lending programs in December.

UK: Inflation (Wednesday), retail sales, and Markit flash PMI’s (Friday).

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.

ALL TRADING INVOLVES RISKS. LOSSES CAN EXCEED DEPOSITS.

City Index is a trading name of StoneX Financial Pte. Ltd. (“SFP”) for the offering of dealing services in Contracts for Differences (“CFD”). SFP holds a Capital Markets Services Licence issued by the Monetary Authority of Singapore for Dealing in Exchange-Traded Derivatives Contracts, Over-the-Counter Derivatives Contracts, and Spot Foreign Exchange Contracts for the Purposes of Leveraged Foreign Exchange Trading. SFP is also both Derivatives Trading and Clearing member of the Singapore Exchange (“SGX”). SFP is a wholly-owned subsidiary of StoneX Group Inc.

The information provided herein is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to invest, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk.

The information does not represent an offer of, or solicitation for, a transaction in any investment product. Any views and opinions expressed may be changed without an update. To understand the risks and costs involved, please visit the section captioned “Important Information” and the “Risk Disclosure Statement”.

The information herein is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation.

StoneX Financial Pte. Ltd. 1 Raffles Place, #18-61, One Raffles Place Tower 2, Singapore 048616. Tel: 6309 1000. Co. Reg. No.: 201130598R.

This advertisement has not been reviewed by the Monetary Authority of Singapore.