Markets closed the week out with a bit of a dip in sentiment on Friday as negotiators from the US and Iran failed to meet up, however news that the talks are back on over the weekend could lead to a more positive start on the Monday open.
The dollar took centre stage for many last week as it leapt higher after a hawkish hold from the Fed, while other central banks largely went with expectations. Geopolitics remained a strong factor in market moves as the Strait of Hormuz eventually opened up again, however as above, the path ahead looks far from smooth.
It is a relatively quiet calendar week ahead for traders with geopolitics expected to dominate sentiment again, however there are a few key fundamental releases that will add volatility to their respective markets.
It should be an interesting week for Australian markets with key Employment and Inflation figures due out on consecutive days, however again US data is set to take centre spot for many investors with the key Core PCE numbers due out on Thursday
Here is our usual day-by-day breakdown of the major risk events this week:
Updates out of Switzerland are expected to dominate moves on the open, however there will be a focus on Chinese markets midway through the first trading session of the day when the PBOC announces the latest Loan Prime Rate updates. The London session has little on the cards, however the New York open will see a return of US traders after a long weekend as well as key Canadian CPI data close to the start of the day.
Tuesday see’s the release of a raft of Flash Manufacturing and Services PMI numbers across the globe whilst we also hear from some key central bankers, including the MPC’s Alan Taylor and the Bank of Canada Governor Tiff Macklem when he speaks in Paris.
Wednesday see’s the first of two key data updates for Australian markets with the CPI data due out early in the day and while there is little else of note due out in terms of data, the central banker speaker circuit is in full flow throughout the other sessions, with German Buba President Joachim Nagel probably the standout speaker amongst several others.
Australian markets will again be in focus on the Asian open with Employment data due early in the day. The London session is relatively quiet, but the big data releases of the week for the US are due early in the New York session with the Core PCE Price Index, Final GDP and Weekly Unemployment Claims numbers all out at the same time.
It’s a relatively quiet calendar day on Friday to close out the trading week. Core Tokyo CPI numbers are the highlight of the Asian session and there are just the Revised University of Michigan numbers due early in the US session that will possibly effect markets, however again there are several central bank speakers including the Fed’s Williams and Kashkari that could throw a spanner or two in the works, but any big news on the geopolitical front aside, it should be a relatively quiet trading day to finish the week.
