CMC Markets Weekly Report - 8th March 2010
On Friday the Dow gained 122.06 points, or 1.17%, to end at 10,566.20. The S& P 500 added 15.73 points, or 1.40%, to 1,138.70 and the Nasdaq rose 34.04 points, or 1.48%, to 2,326.35.
The broader market got a lift from smaller than expected job losses, after U.S. data showed nonfarm payrolls shed 36,000 jobs in February compared with expectations for a loss of 50,000. Investors had been concerned severe winter weather that affected much of the US would cause a larger drop in payrolls.
News that consumer credit rose $4.96 billion in January, its first increase in a year and the largest for any month since mid-2008, according to Federal Reserve data, boosted financial stocks.
This week in Australia we see the release of ANZ's job ad numbers, NAB's business confidence and January home loan numbers on Tuesday. On Wednesday we will be interested in the Westpac consumer confidence number, and on Thursday we watch for the release of the February unemployment numbers, which should be the highlight. There is another round of stocks going ex-dividend this week and Myer will provide a quarterly sales update on Thursday.
It's a quieter week in the US, with January wholesale inventories sales out Wednesday. The monthly trade balance for January out is out on Thursday. We have the fortnightly Michigan Uni consumer confidence reading and the important US retail sales number out on Friday.
Of more interest in the US will be the latest round of Treasury bond issuance. This time another US$74bn of three, ten, and thirty-year bonds are up for grabs. While shorter term Treasury debt is still well bid as a safe haven, the risk of inflation is beginning to weigh on longer dated demand. Foreign central bank interest has been falling alarmingly of late.
This week will also see the release of monthly Chinese economic data, with Thursday down for the release of inflation, sales, investment and industrial production numbers. The releases will be closely watched given recent moves by Chinese authorities to slow economic growth ahead of inflation fears.
The Reserve Bank of New Zealand will make a rate decision on Thursday.
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