CMC Markets Weekly Report - 30th August 2010
US stocks rebounded on Friday to post their best gains in nearly four weeks, overcoming initial skittishness brought on by a revenue warning from Intel and dour comments from Federal Reserve Chairman Ben Bernanke. US economic growth was revised down in the second quarter, but the reading was still better than expected at 1.6%. The debate over whether the economic recovery has hit a soft patch or is headed for a double-dip recession has plagued the market.
Strong buying interest at a key technical level and short-covering sparked the market's comeback, and the tone improved as investors took a more positive view of Bernanke's comments about the economy and the Fed's readiness to act.
The Dow Jones Industrial Average gained 164.84 points, or 1.7 per cent, to 10,150.65. The Standard & Poor's 500 Index jumped 17.37 points, or 1.7 per cent, to 1064.59. The Nasdaq Composite Index climbed 34.94 points, or 1.7 per cent, to 2153.63.
Today and tomorrow see the final two days of the Australian reporting season. We then move into a large amount of economic data across the globe to absorb.
On the GDP front, India will report its second quarter number tomorrow, and Australia on Wednesday (consensus expectation 0.9% up from 0.5% in March), and the eurozone will revise its previous estimate on Thursday (consensus expectation unchanged at 1.0%).
In terms of PMI, Japan will release its manufacturing number tomorrow and Australia, China, the UK, EU and US will release their PMI numbers on Wednesday.
Australia sees business inventories and new home sales today, building approvals, private sector credit, retail sales and the second quarter current account on Wednesday, and the monthly trade balance on Thursday.
In the US, tonight sees personal income and expenditure, and Tuesday brings the Case-Shiller house price index, the Conference Board measure of consumer confidence, the Chicago PMI, and the minutes of the last Fed meeting. On Wednesday it's construction spending and vehicle sales along with the manufacturing PMI and the ADP private sector unemployment number, Thursday sees pending home sales, chain store sales and factory orders, and Friday sees non-farm payrolls and the services PMI.
The UK markets are closed tonight for the August bank holiday and the ECB will make a rate decision on Thursday.
There's a raft of important data out in Japan this week but initial attention will be focused on the aforementioned emergency currency meeting called by the Bank of Japan today, which may well result in intervention to curb a soaring yen.
|
