Markets closed out a volatile week with a much more muted session on Friday. Given the preceding drama one can hardly blame them. Markets opened last Monday on the back foot, following poor economic data and the Bank of Japan pivot the week prior. Subsequent data helped calm things down, allowing the losses to be painstakingly clawed back over the course of the week.
The Dollar, which got smashed on Monday, ended the week almost flat, the DXY maintaining the 103 level. US indices also recovered well, the S&P 500 and Nasdaq Composite more or less ending the week where they finished the previous one. The Dow Jones was not so resilient, closing the week 0.6% in the red.
On the other side of the Pacific, the other major player in all this had an equally interesting week. Japanese markets underwent a brutal selloff on Monday, the Nikkei 225 falling over 12% at one point and yet managing to close the week a mere 2.5% in the red. The Yen, which has massively appreciated against the Dollar over the past month, finally eased off, content to remain around 146 for the time being.
Markets should have an easier start to this week, given the lack of events on the economic calendar. Traders will have to wait until Wednesday for the juicier updates, with the UK inflation rate and US CPI data. Attentions shift to Asia on Thursday, with Japanese GDP and Chinese retail sales, industrial production and unemployment rate. Later in the day, US retail sales and jobless claims hit the newswires, the latter having possibly a greater influence that usual given more pronounced fears surrounding the US economy. Friday is another light day, UK retail sales being the main point of interest.
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