- A pulling back on the prior dovish shift from the mid-June Federal Open Market Committee Meeting (FOMC) Meeting, with US Federal Reserve (Fed) speakers last week attempt to subdue market expectations for more aggressive rate cuts (anticipation was rising for a 50bp cut on July).
- This saw equity markets correct modestly lower, alongside Bonds, whilst the US Dollar posted a slight rebound, albeit a very shallow corrective bounce.
- On Saturday it was announced from Osaka, Japan, that Presidents Xi and Trump (of China and the US respectively) had agreed to a cessation of trade war escalations and for trade talks to resume.
- On Sunday President Trump met North Korea’s leader Kim Jung Un in the Demilitarised Zone (DMZ) on the North/South border. He is the first serving US President to enter North Korea and the leaders agreed to recommence previously stalled nuclear talks.
- The S&P 500, the US benchmark average, posted its best performance for June since 1955, PLUS the strongest H1 (first half year) since 1997!
Key this week
- Manufacturing and Services Purchasing Manager Index (PMI)
- US Employment Report
|Date||Key Macro Events|
|01/07/19||Manufacturing Purchasing Manager Index (PMI) – Global data releases|
|02/07/19||Reserve Bank of Austrasia (RBA) Meeting, rate decision and statement|
|03/07/19||Services Purchasing Manager Index (PMI) – Global data releases|
|04/07/19||US Independence Day – US Markets closed|
|05/07/19||US Employment Report: Non-Farm Payroll & Average Hourly Earnings|