Market Analysis

Calendar Week 12

Agenda

• Economic Calendar

• Interbank Rates Overnight

• Interbank Rates 3M

• Bonds

• Equities

• News

Economic Calendar – CW 11

Economic Calendar – CW 12

Interbank Rates - Overnight

Interbank Rates – 3M

Bonds

Equities

Index Performance

DAX 1.1%

Dow Jones -0.3%

EuroStoxx 1.9%

S&P/TSX 1.3%

FTSE 100 -2.0%

SMI 1.2%

Nikkei 225 1.1%

Hang Seng 3.2%

Australian all ordinaries 0.4%

Equities – last week

Equities – Sector Performance (Friday)

Fed’s Dot Plot

News - Markets

• stronger than expected US Date and reports of a hawkish think tank reports

suggesting the FED may prepare markets for 4 hikes this year next week

(vs. current dot plot consensus of 3)

• cronyism claims against Japanese PM Abe and MoF chief Aso with the

latter not attending next weeks G20 gathering as a result

• global protectionism factors and concerns about President Trump’s changing of the White House guard

• Loonie also undermined by disappointing Canadian macro releases and a

still cautious BoC

• dovish ECB guidance due to sub-target inflation that was underscored by

downside tweaks to final CPI data

News - Markets

• CHF never really saw strong demand during risk-off trade/flows, and

certainly after the SNB maintained that the Swiss Franc is highly valued

– back down towards 0.9550 vs the USD and near 1.1700 vs the EUR

• Reserve Bank has warned investors that a rise in global interest rates

may impact other asset classes, as major governments shift from net

buyers to net sellers of bonds

• Fed Chair Jerome Powell makes his first rate decision, and it is going to

be a rate hike, that is all but inevitable

• so-called "Rexit" rattled markets and weighed on the US Dollar and stole

the show from the inflation report that came out at the same time

News - Markets

• Yen strengthened on the Moritomo scandal (a cheap sale of land to a

school in which the wife of PM Abe is involved implicated Fin Min Taro

Aso, and he will skip the G-20 gathering)

• after the tensions with Russia moved away from the UK, the focus shifts

to the Irish question in Brexit and the Fed

• Russian Foreign Minister Sergei Lavrov said that Britain's expulsion of

Russian diplomats was unacceptable and dangerous. His words sent the

GBP/USD lower