The spread of the Coronavirus out of China put a blip in the global economy expansion this past week. Last time there was something of the sort was due to the SARS virus when there was some economic damage globally. Energy led the way down as oil plummeted due to reduced travel demand and shutdowns. Striking just as the global economy was showing signs of re-acceleration, the spread of a new virus from China to other countries has raised fears that it could impede growth. Global equities reacted to the market news and dropped, some oil dropped over 18% from tops, such as West Texas Intermediate crude. This caused safe-haven assets like gold and the USD to move higher.

It was a shorter week in observation of MLK and leaders meeting Davos focusing on trade deals. The US and France clashed and came out with a truce until the year-end. Trump then threatened to put tariffs on European autos if EU leaders don’t open their arms for compromise before the US elections.

The S&P moved higher at the beginning of the week, printing all-time high after all-time high, until the end of the week. Earnings came out of tech this week and Intel managed to beat the forecast helping Nasdaq hold its bullish ground.

Here is a look at last week’s stock market on a daily basis (red vertical lines split days).

Stock Market and Sector Overview

Here is a break down of the weekly performance in various stock market sectors (top chart):

  • Energy  -5.03%
  • Technology +0.79%
  • Financials  -1.97%
  • Retail  -2.31%
  • Utilities  +2.95%

Overview of key markets last week (bottom chart):

  • Crude Oil -7.41%
  • S&P500  -0.93%
  • Silver  +0.47%
  • Gold  +0.85%
  • US dollar +0.25%

Weekly Economic Calendar

Interesting week ahead in high impact news, especially out of the Central banks throughout the world. We highly anticipate this week’s Fed announcement.

Monday, German Ifo Business Climate.

Tuesday, CB consumer confidence out of the US, CPI data out of Australia.

Wednesday, FOMC statement, federal funds rate and FOMC press conference out of the US.

Thursday, BOE Monetary policy report, MPC official bank rate votes and monetary policy summary out of the US. Advanced GDP data out of the US and manufacturing PMI out of China.

Friday, GDP out of Canada.

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