Weekly Market Review –April 4–8 2016
Australia interest rate decision and U.S. FOMC meeting Minutes will be the main events this week
Last week the American currency lost some positions after US Federal Reserve Chairman, Janet Yellen’s statement. Let us remind that on Tuesday Yellen stressed that at the moment the conditions for a rate hike are much tougher compared to December, when the rates have been raised. She also noted that cost of borrowing’s increase should be slower. Meanwhile, she said that there is a possibility of negative interest rates, if this will be needed. The Friday’s NFP report provided some support to US dollar. 215,000 jobs were created in March, wages grew by 0.3% and the unemployment rate rose to 5%. Australia interest rate decision will be published on Tuesday at 04:30 (GMT). Also, market participants will pay attention to U.S. FOMC meeting Minutes, which will be published on Wednesday at 18:00 (GMT).
Major US stock indexes spent the past week in an upward trend. The reason was Janet Yellen’s statement about the need for a slower pace of rate hikes. That fact provided some support to the stock markets, as the time of cheap money was extended, which had a positive impact on the stock market. In addition, on Friday the ISM Manufacturing PMI was presented, which was better than the average forecast of experts. This week, investors will pay attention to US data, as well as to the dynamics of oil prices.
Major European stock indexes spent the past week in a downward trend that was caused mainly by negative dynamics of oil prices. However, Eurozone economic statistics provided some support. Thus, according to the presented data, inflation in Germany and in the Eurozone showed some growth after almost a year of recession. This week, investors will be focused on the emerging statistics, as well as the quarterly reporting season, which is scheduled to start this week.
Light Sweet Crude Oil Futures, Daily
Quotations of “black gold” spent the past week in a downward trend. This was due to the pressure of a large surplus of oil on the world market. In addition, US crude stocks according to data from US Institute of Petroleum and United States Department of Energy continued to grow. As it became known on Friday, Saudi Arabia has refused to freeze production volumes at January levels. This week the investors will pay attention to reports on US stocks. Market participants will be looking forward to the meeting in Doha, Qatar.