Weekly Market Review – July 11 − 15 2016
Interest rate decisions from both the Bank of Canada & the Bank of England will drive the markets this week.
Last week was full of important events, with the most significant being the NFP report and the FOMC Meeting Minutes. Although the NFP was quite impressive the unemployment rate grew to 4.9%.
This week’s two most important events will be the Bank of Canada’s interest rate meeting schedule for Wednesday, 14:00 GMT followed by the Bank of England’s interest rate meeting, scheduled for 11:00 GMT.
US stock exchanges fell to start last week as oil prices declined thanks to the Brexit. However, the markets rebounded as the week progressed, with the largest increase occurring on Friday with the better than anticipated NFP report. The markets will start becoming more volatile as earnings season kicks off today.
Falling oil prices and the aftermath of the Brexit is what drove the markets including the IBEX last week. The FTSE 100 was particularly impacted on Tuesday as all three main British property fund organizations halted all redemptions. However, Bank of England head Mark Carney reassured investors with his statement. This week the markets will be heavily impacted by the Bank of England’s interest rate decision.
Brent Oil, Daily
Throughout the past week oil prices were caught in a downwards trend thanks to the negative fallout regarding the Brexit. Wednesday’s weekly US oil reports did not help matters, as they stated the number of existing rigs increased by 10, implying that a greater supply of oil will be on the market. Supply and demand data will influence the market this week.