weekly_11_Mar_19

Weekly Research Report – 11 March 2019

Clay Carter

Well it had to happen eventually. Global equity markets were down for the week on concerns over the European Central Bank’s decision Thursday to deploy additional fiscal stimulus, and a lukewarm U.S. jobs report on Friday that showed a sharp slowdown in U.S. hiring growth last month (although previous months were revised up - January’s payroll gains were revised upwards to 311K for the biggest two month increase in jobs created in 2.5 years).

Market corrections are normal, particularly after such a strong run year to date.

Weekly returns to 8 March 2019 
(AUD return far right- hand column)

190311_1Source: Bloomberg

Rates/Commodities

  • 10-Year Treasury yield: -12bp to 2.63%
  • WTI crude oil: +0.46% to US$56.07
  • AUD/USD: -0.03% to 70.34
     

The week ahead

This week we have a crowded economic calendar with a focus on inflation. Of special interest will be retail sales and new home sales for January. Small business optimism is important as well as the Michigan Consumer Sentiment index.

190311_5Source: briefing.com

Charts of the week

  1. Smartphones now ex-growth phase but 5G to the rescue beyond 2020.
    190311_6

  2. We're living through the longest bull market ever. The S&P 500 Index has increased more than fourfold in value, producing a total return of 410% (17.7% annualised) while rising 314% in price.
    190311_2

  3. Largest Companies in March 2009 and now.

    190311_3

  4. Why Amazon is going after groceries: it is the most under-penetrated category by far.
    190311_4

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