Market Weekly Update 5/5-9/5

Good morning,

US equities had a positive week and the S&P500 closed at 1,872.50 (+0.67% weekly), up 12.50 points and Nasdaq gained 45.25 points at 3,575.75 (+1.28% weekly). The Dow Jones Industrial Average rose 124 points at 16,448 (+0.76% weekly). Positive performance however did not lift gauges above resistances that links lower highs. This technical observation is valid also for most European and Asian indices.  US earnings had a weight in risk taking positions on equities and Non Farm Payroll data released last Friday at 288K was above the 218k expected. The data could be misleading because the number of people that are in the US labour market is decreasing.

In the FX market the Greenback weakness was the main trading strategy and the US dollar lost 39 pips against the shared currency and EurUsd closed on Friday at 1.3872 (+0.28% weekly). GbpUsd rose 81 pips at 1.6876 (+0.48% weekly) and both Kiwi dollar and Aussie dollar rose against the US dollar. NzdUsd gained 83 pips at 0.8660 (+0.97% weekly) and AudUsd rose 13 pips at 0.9277 (+0.14% weekly).  The Loonie  dollar also rose 63 pips against the Greenback and UsdCad closed at 1.0975 (-0.57% weekly). The rate where the US dollar gained just 3 pips is UsdJpy at 102.21 (+0.03% weekly). UsdChf lost 33 pips at 0.8780 (-0.37% weekly).






Silver underperformed Gold and the commodity lost 20 cents at 19.49 $/oz (-1.02% weekly). The shiny metal lost 40 cents at 1,299.99 $/oz (-0.03% weekly). Crude Oil closed below 100 $/barrel at 99.99 $/barrel (-0.61% weekly) and Natural Gas lost 3 cents at 4.68 $/BTU (+0.82% weekly).  Today the most relevant macro data from the Asian Session will be the Chinese Manufacturing PMI that will be released at 01:45 GMT.  During the European session the traders will pay attention to the Eurozone Sentix  Investor Confidence at 08:30 GMT and then to the Eurozone PPI. In the afternoon at 13:45 GMT in US will be released the Markit US Services PMI followed by the ISM Non Manufacturing at 14:00 GMT.  On Tuesday at 04:30 GMT the Reserve Bank of Australia will make its decision about interest rates and in Europe from 7:45 GMT to 8:00 GMT Markit PMI figures regarding Eurozone members and aggregate date will be released. At 08:30 UK PMI will be the most important data for the British Pound.  At  09:00 GMT Eurozone Retail Sales will end the macro news flow from Europe.  At 12:30 GMT US Trade Balance data followed by the Canadian Ivey PMI at 14:00 will be the most relevant data from the other side of the ocean.  The Asian trading session likely will start with an increase of volatility and at 22:45 GMT New Zealand unemployment rate data will be followed at 23:50 GMT by the Bank of Japan Minutes.  On Wednesday the Australian Retail Sales at 01:30 GMT will continue the data flow that started the end of the previous day and at 01:45 will be released the Chinese Service PMI. At 05:45 GMT the Swiss Unemployment rate probably will be a catalyst for future decisions of the SNB.  At 11:00 GMT US Mortgage Application data followed by Canadian Building Permits at 12:30 GMT and US Crude Oil Inventories at 14:30 GMT  will be the most important data in the US session. On Thursday at 01:30 GMT  Australian Unemployment rate and Chinese Trade Balance at 02:00 GMT are the most relevant data of the Asian session.  Before spot equities will open in Europe at 08:00 GMT will be released the German Industrial Production. At 07:15 GMT another important data will come from the Swiss CPI. At 11:00 Bank of England will decide both interest rate level and asset purchase target. At 11:45 the European Central Bank will make its decision regarding interest rates and deposit facility rate. At 12:30 GMT US Initial and Continuing Claims data followed by the EIA Natural Gas Change at 14:30 GMT. On Friday at 01:30 Chinese PPI and Australian Statement of Monetary Policy data are going to be monitored very carefully because the financial community could estimate and thus take positions on future decisions of Central Banks. At 08:30 GMT British Trade Balance data will be released and at 12:30 GMT the Canadian Unemployment Rate figures followed at 14:00 by British NIESR Gross Domestic Products will be the most relevant data during the US session.