It was another volatile week for financial markets, although the major indices ultimately finished strongly with US equities once again pushing into record territory. The Middle East remained a key driver, with oil swinging on Strait of Hormuz headlines, while a much weaker-than-expected US jobs report quickly shifted focus back to the Fed. This week looks quieter on the calendar, but US inflation data and the RBA rate decision remain key events to watch, with geopolitical headlines still capable of moving markets sharply.
Market Review & Outlook
It was another volatile week for financial markets, although the major indices ultimately finished strongly with US equities once again pushing into record territory.
The Middle East remained a major driver, with oil initially falling sharply as hopes increased that the Strait of Hormuz could reopen to shipping. However, with the details still unclear and hostilities continuing, oil has bounced over the last few sessions as traders reassess the risks to global supply.
The big macro event last week was the US employment report, with Non-Farm Payrolls coming in well below expectations and quickly shifting the focus back towards the Federal Reserve and the path for US interest rates.
This Week’s Focus Events
The week ahead is relatively quiet on the calendar, but there are still some major risk events to keep traders busy. US inflation will be the big focus, while the RBA interest rate decision will provide plenty of interest for AUD traders. With geopolitical headlines still capable of moving markets sharply, it could be another volatile week despite the lighter calendar. Key events this week include US CPI, the RBA Interest Rate Decision, and US PPI.
| Date | Event | Market Focus |
|---|---|---|
| Tuesday | RBA Interest Rate Decision | AUD |
| Wednesday | US CPI | USD |
| Thursday | UK GDP | GBP |
| Thursday | US PPI | USD |
| Friday | US Retail Sales | USD |
Week Ahead Outlook
Overall, it may be a quieter week on the calendar, but US inflation, the RBA and ongoing Middle East developments should provide more than enough ammunition for traders.