Weekly Market Review – May 30– June 3 2016
The NFP will highlight this jam-packed week.
At the end of the week most of the major currencies showed a decline against the USD. The largest of which were the New Zealand dollar (-0.94%) and the Euro (-0.93%). Smaller drops showed the Swiss franc (-0.47%), the Australian dollar (-0.45%) and Japanese yen (-0.28%). On the other hand growth showed the Canadian dollar (+ 0.59%) and British pound (+ 0.78%).
Last week, the US dollar strengthened greatly thanks primarily to remarks from Fed officials pertaining to potential rate hikes and monetary policy tightening. Additionally, better than expected data on new home sales and orders for durable goods helped the pair. The coming week will be eventful of macroeconomic data. Starting Tuesday at 7:55 GMT Germany will present its labor market data followed by Eurozone consumer prices at 9:00 GMT, and then at 12:30 GMT Canadian Q1 GDP along with a US Core PCE Price Index will be published. On Wednesday 1:00 GMT, China will present its assessment of business activity in the manufacturing sector and Australia and Switzerland will publish their Q1 GDP data. However, this week’s two main attractions will be the ECB’s interest rate decision scheduled for Thursday 11:45 GMT and the long-awaited NFP report scheduled for Friday 12:30 GMT.
Major US stock markets trended positively this past week, with the biggest growth coming in the banking sector thanks to the US Federal Reserve implying the possibility of an upcoming rate hike. Further support for the stock market came via better than expected US reports regarding new home sales and orders for durable goods. Friday’s upcoming NFP report will affect the market the most.
At the end of the trading week: Dow + 2,07%, S & P + 2,15%, NASDAQ + 3,38%
Major European stock indexes recorded moderate increases last week thanks to rising oil prices and the declining euro. Additionally, the increased probability of a US rate hike spurred on the market. This week investors should pay attention to the upcoming ECB meeting scheduled for Thursday 11:45 GMT. Most leading analysts believe that the European regulator will not make any monetary policy changes.
Crude Oil Futures, Daily
Crude oil prices rose last week with prices eclipsing the $50 a barrel mark thanks to the US Institute of Petroleum’s report. The number of existing drilling rigs in the US decreased by 2 units. Investors should pay attention to OPEC’s upcoming crucial meeting, scheduled for June 2. Most experts do not anticipate any drastic measures will be enacted.