- Australian construction sector starts week on a high note
- Quiet Monday ahead of a busy week
- Markets fear fragility of global growth
How healthy is the global economy?
The global economy has been recovering over the last couple of years; of that there is little doubt, but there are questions in the minds of many traders, analysts and commentators over how robust that recovery will continue to be. Slowing growth on the indices, in manufacturing and retail data, for example, in the US and elsewhere have knocked confidence in the recovery. Add in the threats of an escalating trade war between the US and China (and everyone else for that matter) and the picture becomes even more opaque.
Good news for Australian Dollar
We started the week with a little good news, though. Australia’s construction sector saw good growth in March and that strengthened the Australian Dollar. A 57.2 index reading is significantly up on last month’s 56.0 and it propelled the GBPAUD downward to below A$1.80.
Quiet start to the week for currency markets – but not for long…
Excitement over, though, and the markets are settling in for a quiet Monday. There are a few speeches expected from EU finance figures and there will be a little bit of Canadian housing data later in the day but, barring any unexpected excitement, the day is likely to pass without incident.
The week ahead is a very different matter:
Bets on for the next US interest rate hike?
We will get meeting minutes from the last Federal Reserve meeting; a chance to test everyone’s theories on rate hike timing and pace.
What next for China-US stand off?
We will get inflation and trade data from China; a chance to test theories on the impact of their trade standoff with America.
Optimistic outlook for Eurozone trade balance?
We will get Eurozone industrial production and trade balance data; the forecasts for which look very optimistic at the moment. So there is certainly room for disappointment...
Other than these known knowns, anything could happen!
I hope your week is a good one.
A rather blustery day
I will leave you with an excuse on par with ‘the dog ate my homework’. A woman arrested for possession of drugs in Florida admitted possession of cannabis but claimed the cocaine in her purse must have blown in through the car window and got lodged in her purse. To be fair, the cops did note it was a windy day, so, who knows? It could have been legit. Personally, I am still waiting for that cheque that is in the post and I believe that anyone can become president.
At the theatre
An usher hurries along to a man sprawled across two seats in the middle of the theatre. “Sorry, Sir,” says the usher. “You’ll need to sit in just one seat. Can I see your ticket and I will direct you accordingly?”
The guy doesn’t move but says, “wheadyasaymnufurtimauminfty”.
“Sorry sir, I don’t understand. ”says the usher, and then he slowly very deliberately says, “CAN YOU SHOW ME YOUR TICKET, PLEASE?”
The guy still doesn’t move but says, “himetrynasaysmin.”