Let's take a look at last week's market action and what to expect this coming week.
All eyes on Eurozone inflation RBA and ECB rate decisions this week
US nonfarm payroll release Let's take a quick look at what happened in
the global markets last week and what we need to be aware of for the upcoming week.
Wall Street rose at the end of the week but came off the day's highs, as shares of biotechnology
and small, high-growth companies continued to falter.
The Dow Jones added 58.8 points to close at 16-32-3.
The S&P 500 added six points to 18-58.
The Nasdaq Composite edged up 5 points, to 41-56.
With the day's advance, the Dow turned positive for the week.
The NASDAQ, however, remained on track for a negative week following an extended period
of investors taking profits in some of the market's biggest outperformers.
The week ahead will be packed with volatility as we see Chinese manufacturing data, the
US nonfarm payroll report, the RBA interest rate decision and the ECB rate and meeting.
European shares posted further gains to end the week, supported by speculation of further
ECB action next week after national inflation data showed a further slowdown.
Last week the Asian Pacific regional markets edged higher with Wall Street providing a
strong lead following a mixed batch of economic indicators, while the Nikkei was lifted by
another pick-up in Japanese inflation.
With few major catalysts to drive business, investors are keeping an eye on the release
next week of key data from China, the United States and Japan.
In corporate news, BlackBerry dropped 7.1 percent to $8.41.
The smartphone maker said sales won't grow until the fiscal year that begins next March,
even after cost-cutting helped the company post a smaller quarterly loss than analysts
estimated.
Restoration Hardware Holdings surged 13 percent to $71.93.
The home-furnishings retailer forecast that adjusted profit will be between 9 cents a
share and 11 cents in the first quarter, compared with analysts' estimates for 6 cents.
It said annual profit will be as much as $2.22 a share, beating the average projection for
$2.18.
In the foreign exchange market two of the biggest drivers of USD strength were weakened
this Friday.
Concerns from the market regarding the Chinese economic slowdown were dispelled somewhat
after the Prime Minister issued words of assurance.
European deflation fears were reduced after Germany, the biggest economy in the EU, posted
a slower decline.
The euro-dollar was little changed on Friday ahead of crucial data on eurozone inflation
while the yen slipped against the dollar before Japan's sales tax hike takes effect.
The euro rose to $1.37-52.
The dollar's lack of firm strength was underpinned Friday by fresh data on US inflation.
The dollar gained against the Japanese currency, however, to 102.80 yen, ahead of the April
1st hike in sales taxes that economists worry could slow Japan's economic rebound.
The euro-yen was little changed, moving to 141.38.
The British pound pushed higher to $1.66-37 supported by strong economic data with retail
sales beating expectations and GDP printing at forecast.
Moving to the commodities market oil prices extended gains Friday as data showed U.S.
personal income and spending increased broadly in February.
As the United States is the top crude consumer of the world, the recovery of its economy
signals more demand ahead.
The Ukraine crisis continued to support the crude market.
U.S. President Barack Obama on Friday urged Russia to pull back troops from the border
with Ukraine and start direct talks with its neighbor.
Moscow's next move is a top concern of the West after it annexed Crimea this month.
Russia produced more than 10 million barrels of crude a day in January, and is the second-largest
producer of natural gas.
More than 70 percent of Russian crude and gas exports to Europe pass through Ukraine.
Light, sweet crude moved up 39 cents to settle at 101.67 while Brent crude gained 24 cents
to close at 108.07 dollars a barrel.
The price of gold is hovering around a six-week low as signs of improving United States economic
growth and easing concerns about Ukraine strengthen investor interest in the haven asset.
Gold was trading at $12-95.80, a gain of 80 cents.
The precious metal has declined 6.5 per cent from its 2014 peak of $13-82.92 an ounce on
March 14th.
This is Amy Anderson from OptionRally signing off.
Watch for some exciting changes to Optionrally TV coming in April.
Have a great week.