It was a shorter week last week due to a day off on Friday to celebrate the Independence Day in the USA. Here’s what was up in short:
-> The markets last week were slowly getting used to the rising virus cases and the marginal negtive effect of such news on the equity indices was smaller every day.
-> Markets were still supported by constant injections of liquidity. It can be clearly seen by continuous rise in the ECB’s balance sheet for instance, which the week before alone grew by as much as 11%. This hugely improves liquidity in capital markets and definitely supports riskier assets like equities. I wrote about it here.
-> Thursday’s jobs data was the cherry on the cake last week. In June US labour market suprised to the upside again and the change in Nonfarm Payrolls was much above expectations (see below from Bloomberg):
-> On Friday the US markets were closed for Independence Day.
-> Effective weekly index changes: S&P500 +1.5%, Nasdaq +1.9%, EuroStoxx600 +1.9%, DAX -2.0%, Nikkei225 -0.9%.
Other markets events:
-> Bonds: US yield curve (10y-FF) was stable around 0.6% again, German curve (10Y Bunds-3M) ended 0.11% with 10Y Bunds at -0.43%, High Yield Spreads at 6.1% – not much action.
-> Commodities (ex oil): Gold ended +0.1% just under $1800/ounce psychological level, where it consolidated whole week.
-> Oil: +4.2% on week
-> Currencies: not much aciton in currencies, DXY (Dollar Index) -0.24%, EURUSD +0.2%.
Major macro events: (times are CET):
Next Week’s major macro events:
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