US-Middle Eastern tensions flare causing oil to spike over 4%.
This week equity markets, experienced volatility, and movement as the holiday season came to an end. The S&P 500 and Dow Jones had their single biggest one-day losses since early December to wrap up the week. The end of week volatility was due to the US airstrike that hit Iraq, killing a top military official from Iran. This caused volatility in the oil market as expected to cause prices to pop and tensions in the Middle East to pop as well. Oil popped as much as 4.8% closing 3.1% higher. Data came out weak this week in the form of softer ISM Manufacturing data. The S&P 500 dropped 0.2%, the Dow -0.1% and the Nasdaq +0.2% on the week. This week trade deals continued to progress as we can expect a deal for Phase 1 on January 15th. The details released included a double in American exports to China over the next two years. China finally agreed to take a stronger stance on mitigating intellectual property theft and deepen access to its financial markets. Additional tariffs were suspended as well, agreed to a halt naturally if the two sides are to progress in the trade deal.
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 -2.80%
- Technology +0.14%
- Financials -0.39%
- Retail -2.55%
- Utilities -0.42%
Overview of key markets last week (bottom chart):
- Crude Oil +2.04%
- S&P500 -0.04%
- Silver +1.20%
- Gold +2.38%
- US dollar -0.12%
Weekly Economic Calendar
The holiday season is over and the high impact news is back. There is a lot of data out of the US to go through this week which should impact the markets interestingly since last week we saw ISM data drop markets.
Monday, no high impact news.
Tuesday, ISM non manufacturing PMI out of the US and building approvals out of Australia.
Wednesday, ADP non-farm numbers out of the US and the trade balance out of Australia.
Thursday, BOC Poloz speaks out of Canada and retail sales out of Australia.
Friday, a big day in high impact news as the jobs numbers we’ve all been waiting for out of the US are coming out, along with Canadian figures.
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