Indices
Two out of the three major US indices, the Dow and the S&P500, reported historic highs last week as their quotes were lit green for yet another week. The Dow blue-chip index continued its upward trend for a seventh consecutive week, crossing the psychological barrier of 16,000 points for the first time and closing at 16,061, or an increase by 0.63%, on Friday. The euphoria was also evident on the S&P500 graph. The broad index rose for an eighth consecutive week, this time by 0.35%. Despite being modest, the appreciation was enough for the index to cross the 1,800 milestone barrier and close at 1,804. Investors’ optimism was in line with claims by many Fed members that the stimulus programme will not be reduced this year, despite positive economic data from the US.
Upbeat results on economic growth and business confidence in Germany boosted the DAX30. Its price rose by 0.51% and along with Italy’s S&P/MIB, which increased by 0.70%, were the only European indices to close with the week an appreciation.
The leading Japanese Nikkei225 index rose by more than 1.50% for the past five days, boosted by the yen’s continuing depreciation.
Forex
After Japan’s central bank decided to keep its monetary policy intact, the USD/JPY settled in the above-100-level zone and its last Friday’s quote was at 101.32.
Other major currency pairs also “enjoyed” interesting chart movements. The EUR/USD and the GBP/USD rose by 59 pips and 105 pips, respectively, while the AUD/USD tumbled during the week, dropping by the more than 200 pips and closing at 0.9165.
Commodities
On the commodities markets, both gold and silver experienced serious losses as the downtrend of both metals still “eats off” their prices. Gold lost 3.48%, ending the period at $1,243 per troy ounce, while silver fell 4.33%, with the last quote for the week being $19.85.
What to expect this week?
This week’s start is rather gloomy as Monday’s economic calendar offers are quite limited, with main highlights being the UK’s Mortgage Approvals for October, the US Pending Home Sales, also for October (MoM and YoY), and the Bank of Japan Monetary Policy Minutes. Tuesday’s “grand” entries consist of the UK’s Nationwide Housing Prices for November (YoY and MoM), the US Housing Start and Building Permits for October and September, along with the country’s Consumer Confidence for November and New Zealand’s Trade Balance for October. Wednesday and Thursday, on the other hand, are set for big data releases, starring Germany’s Gfk Consumer Confidence Survey, the UK’s GDP Preliminary Release for Q3 (QoQ and YoY), along with the country’s Initial Report Hearings, including also the US Mortgage Applications, Durable Goods Orders for October, and Initial Jobless Claims. As the US celebrates Thanksgiving Day, on Thursday investors will shift their attention exclusively to data from the Eurozone, with the likes of Germany’s unemployment rate and Consumer Price Index, and also the Eurozone reports on Consumer Confidence and Business Climate for November being set for release. Other data will also include Japan’s National Consumer Price Index and Building Permits for October. Friday will close the week with the UK’s Gfk Consumer Confidence, Japan’s Housing Starts, the UK’s Mortgage Approvals, the Preliminary release of the Eurozone Consumer Price index for November, along with the area’s unemployment rate for October.
Despite the economic calendar events set for the week, by far the most important one will be the start of the holiday season in the US on Friday. Immediately after Thanksgiving, the shopping craze will spread across the US up until Christmas, with the results and volumes of money spent will reveal to analysts the financial state of the American taxpayer.
More: As Black Friday approaches, financial markets’ mood is anything but dark