Weekly Market Review – August 8 − 12 2016
New Zealand’s Interest Rate Decision will be this week’s main highlight
Last week the Australian and UK central banks lowered their interest rates – Australia from 1.75% to 1.5% and the UK, from 0.5% to 0.25%, a record low and the first cut since 2009. The bank will additionally purchase £60 billion and £10 billion worth of UK government and corporate bonds. The pound obviously fell. Additionally, the NFP came out better than expected at 255K against expectations of 180K. U.S. Average Hourly Earnings also showed growth.
This week will be full of important news and events, with the New Zealand Interest Rate Decision on Wednesday at 21:00 GMT, followed by German and Eurozone GDP, scheduled for Friday 6:00 and 9:00 GMT respectively.
Major US stock indexes finished the week strong thanks to Friday’s excellent NFP report after falling during first half of the week. Against this background, the main stock indices reached historic highs.
This week traders should pay attention to US economic statistics.
Major stock indexes across Europe fell to start the week thanks to poor oil market dynamics. However, once the Bank of England cut its interest rates the situation changed.
Brent Oil, Daily
Oil was under pressure for much of last week as volumes grew in the Middle East along with the number of drilling rigs in the US. However, towards the end of the week oil stocks fell in the US, which propped up the struggling commodity.