Eyes turn to China as market turmoil spreads globally
WEEKLY MARKET COMMENTARY |
Investors will continue to closely monitor policy decisions and market action in China this week after the worst start to the year in U.S. equity markets in history. Geopolitical events in the Middle East will also continue to shape appetite for risk across global asset markets.
Last week’s devaluation of the Chinese yuan, volatility in Chinese equity markets and tensions between Saudi Arabia and Iran sent oil and equity prices plummeting even after a strong close to the week linked to another robust U.S. employment report. This week investors will get a modest stream of U.S economic data, the Bank of Canada’s Business Outlook Survey, and the minutes to the December European Central Bank and Bank of England policy meetings.
In addition to the publication of the Beige Book, the Federal Reserve will send out eight speakers this week, with the most prominent being Vice Chair Stanley Fischer who will speak on “Monetary Policy, Financial Stability and the Zero Lower Bound,” on Tuesday in Paris, France.