Markets by the Numbers
Against a backdrop of ongoing bond value destruction, the Greek PM’s latest piece of interpretive dance, and better than expected US jobs data, markets face a turbulent week as they digest a smorgasbord of data. Australian investors face a difficult day, with many looking to the long weekend to act as a circuit breaker to last week’s negative momentum.
China trade data yesterday set a negative tone, with imports collapsing 18% in May. Despite the poor numbers the Shanghai composite jumped again as speculation mounted that China A shares would be included in a key global share market index. However, copper and oil prices are lower, likely putting opening pressure on resource shares. Inflation data due today may shed light on any change of direction for demand in China, and the prospects for Australian trade.
Locally, home lending data is expected to show a drop of 2% in April. Banks shares have led the recent 8% fall in the market, and signs of strength in lending could support. Any impact may be short lived, with employment data due Thursday and a number of consumer and business indicators released this week. While these may drive local responses, global investors will look to Europe as employment, inflation and industrial production numbers are updated.
For further comment from Michael McCarthy at CMC Markets please call 02 8221 2135.
Frequently Asked Questions about this Article…
The ongoing bond value destruction is creating a challenging environment for investors, as it contributes to market volatility. This can impact investment portfolios, especially those heavily weighted in bonds.
The Greek PM's latest actions, described as interpretive dance, add to the uncertainty in global markets. Such political events can influence investor sentiment and lead to market fluctuations.
Better than expected US jobs data can boost investor confidence, as it indicates a strong economy. This can lead to positive market movements and influence investment decisions.
The collapse of imports by 18% in May sets a negative tone for Australian investors, as it may affect Australian trade prospects. However, speculation about China A shares being included in a global index could provide some optimism.
Lower copper and oil prices are likely to put pressure on resource shares, impacting their performance. Investors in these sectors should be aware of these price movements.
The expected 2% drop in home lending data for April could influence bank shares, which have already led an 8% market fall. Any signs of strength in lending could provide temporary support.
Global investors are closely watching European employment, inflation, and industrial production numbers. These indicators can drive local market responses, affecting Australian investors.
For more detailed commentary on market conditions, investors can contact Michael McCarthy at CMC Markets by calling 02 8221 2135.
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