CMC Markets Weekly Report
On Friday the Dow components Microsoft and General Electric both published solid results. We also saw some weekend squaring from traders, which had the Dow drifting off to a close of up 65 points or 0.5%. The Apple-dominated Nasdaq closed down 0.2%, and the S&P split the difference with a 0.1% gain to 1378.
On Friday the Dow components Microsoft and General Electric both published solid results. We also saw some weekend squaring from traders, which had the Dow drifting off to a close of up 65 points or 0.5%. The Apple-dominated Nasdaq closed down 0.2%, and the S&P split the difference with a 0.1% gain to 1378.
European data was resilient on Friday, with Germany's IFO survey surprising to the upside. Hence the euro found some strength ahead of the weekend meetings. The Bank of Japan declared it was committed to QE and the US dollar index fell 0.5% to 79.14. The Aussie gained 0.4% to US$1.0379 but gold was disinterested, heading into the weekend steady at US$1642.40/oz.
Base metals saw a bit of a boost from the dollar and posted decent gains, with copper up 2%, while West Texas was up US$1.34 to US$103.61.
This week the market will take it's focus from the US reporting season and Data flow. Out of the US on Tuesday we will see all of the US Monday night data which includes the Case-Shiller house price index for February, the conference board consumer confidence number for March, the FHFA house price index for February and the new home sales number for March.
On Wednesday we will see the Feds policy meeting that will provide both a statement and a press conference. While no one expects any dramatic policy changes, the meeting is the last before June and the central bank's Operation Twist is due to end in June. We will also see durable good orders for March.
On Thursday we will see the Chicago February national activity index and pending home sales for March. While Friday brings employment costs, consumer sentiment and the all-important 1Q GDP read.
HSBC's “flash” estimate of China's manufacturing PMI for April will be out today, while Friday sees Japan providing deluge of important economic data.
Anzac day splits the Australian trading week in two on Wednesday. Monday sees March quarter PPI ahead of Tuesday's CPI, which will be heavily watched as a guide to interest rates. Thursday brings the conference board leading index for February and Friday we will see new home sales for March.
On the local stock front the resource sector quarterly production reports will pour in this week, with quite a raft due today in particular. Tomorrow will see retail sales numbers from Wesfarmers' various chains and Friday brings a full-year earnings result from Macquarie Group.
Frequently Asked Questions about this Article…
Last Friday the Dow was supported by solid results from Microsoft and General Electric and some weekend position-squaring by traders, leaving the Dow up about 65 points (0.5%). The Apple-led Nasdaq closed slightly lower (down 0.2%) and the S&P 500 finished modestly higher (up 0.1%).
Key US data to watch includes Tuesday's Case-Shiller house price index (February), Conference Board consumer confidence (March), FHFA house price index (February) and new home sales (March); Wednesday's durable goods orders and the Federal Reserve policy statement and press conference; Thursday's Chicago national activity index and pending home sales (March); and Friday's employment costs, consumer sentiment and the all-important Q1 GDP read.
The Fed meeting is the last policy gathering before June and will include a statement and press conference. While no dramatic policy shifts are expected, investors will watch for guidance ahead of the end of the Fed's Operation Twist in June and any signals on future monetary policy direction.
Australia's calendar is split by Anzac Day. Monday brings the March-quarter producer price index, Tuesday is the closely watched CPI (a key guide to interest rates), Thursday features the Conference Board leading index for February and Friday reports new home sales for March. Company events include a raft of resource-sector quarterly production reports (many due early in the week), Wesfarmers' retail sales from its chains, and Macquarie Group's full-year earnings due Friday.
European data (Germany's IFO) surprised to the upside and helped the euro, while the Bank of Japan reiterated its commitment to QE, contributing to a 0.5% fall in the US dollar index to 79.14. The Australian dollar rose about 0.4% to US$1.0379. Gold was flat near US$1,642/oz, copper jumped around 2%, and West Texas Intermediate crude rose roughly US$1.34 to about US$103.61.
Yes. HSBC's flash estimate of China's manufacturing PMI for April is scheduled for release, and Friday will bring a large bundle of important economic data out of Japan. These international reads can influence global sentiment and commodity markets.
US reporting season remains a focus—strong results like those from Microsoft and General Electric can lift the Dow and market sentiment. Locally, resource companies' quarterly production reports, Wesfarmers' retail sales, and Macquarie Group's full-year result are all likely to move individual stocks and influence sector sentiment.
The March-quarter CPI is viewed as a key guide to interest-rate expectations in Australia. Markets and investors closely watch CPI because it influences the outlook for monetary policy and can affect everything from bond yields to share valuations.
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