Global stock markets and risk appetite came under further pressure on Friday after US Non-Farm Payrolls data came out much lower than expected with it’s lowest print since October 2017. Wages data was better than expected but this failed to counteract the headline number and US indices closed in the red to complete the worst week for stocks of 2019. The dollar dropped back from recent highs with the Dxy trading around 97.40 on the open this morning. Sterling dropped again on Brexit issues with concerned investors looking ahead to Tuesday’s vote in parliament on Theresa May’s revised deal with the EU, cable back under 1.3000 this morning. Gold climbed on the day, regaining the 1300.00 level after days of consolidation just above 1280.00 support and Oil recovered from a dip earlier in the session to finish the week back towards the top of it’s recent range, WTI at $56/b and Brent trading just south of $66/b.
It was a tough week for global stock markets last week and that momentum looks set to carry through to the start of this weeks trading. Lower than expected data prints and increasing depressing global growth forecasts are pushing investor sentiment lower. Central banks have turned dovish across the globe with the Fed leading the way and this has helped to support markets over the last couple of months, however rallies are now more muted as investors seek clarity from either data or signed, sealed and delivered trade agreements. Once again investors will be looking to both the US-China trade and Brexit issues and only solid progress on either front will allow for rallies to resume.
Looking ahead to todays trading and it’s a quiet start to the week in terms of fundamental data releases in both the Asian and London sessions. Fed Chairman Jerome Powell is on CBS this morning during the Asian time zone and he’s expected to stick to recent patient rhetoric. The main data release of the day comes in the US session with the latest Retail Sales numbers due out of the US, market expectation is for a flat print on the overall number with a 0.4% increase in the Core data.