US equities fell on Friday, with potentially the expiry of quarterly options contracts potentially contributing to weakness.
United States
The S&P500 declined -0.65% along with the Dow Jones -0.49% and Nasdaq Composite -0.96% while the Russell 2000 rose 0.40%. Friday marked what is known as “triple witching” or the expiry of expiration of stock options, stock index futures, and stock index options contracts. In economic data on Friday, the latest University of Michigan consumer sentiment survey was in line with expectations at 76.5 compared to forecasts of 77.1.
US Consumer Sentiment (MoM Feb)
On Monday, traders will turn their focus to the latest Canadian inflation data for February, along with US building permits for February. The Fed’s latest policy meeting is in focus on Wednesday, with no changes expected to the 5.5% interest rate while Jerome Powell’s press conference afterwards will be closely watching for clues on the outlook for rates. The latest PMI reports for March will follow on Thursday to round off the week.
Europe
European equities were also lower on Friday, with the Euro Stoxx 600 down -0.32% along with the DAX -0.03% and FTSE100 -0.2% while the CAC edged up 0.04%. Ahead for the week, the latest round of economic sentiment indices for March are due on Tuesday, followed by UK inflation data on Wednesday expected to show core prices rose 4.6% and headline prices rose 3.6%, a moderation in both measures. Thursday will see the latest consumer confidence survey for the Eurozone in March as well as the latest PMI reports for the region. The Bank of England will also meet to set monetary policy on Thursday, with no changes expected to the 5.25% interest rate.
Australia
The ASX is expected to open softer this morning, with ASX200 futures down -13 points or -0.17% to 7,659. The index finished -0.56% lower on Friday taking a weekly loss to -2.25%. Weakness was attributed to a weaker lead from Wall Street following stronger-than-expected producer price data on Thursday. In focus today is the latest economic data from China in the form of fixed asset investment, industrial production, and retail sales. Both the Bank of Japan and the Reserve Bank of Australia will meet to set monetary policy on Tuesday. New Zealand GDP for Q4 2023 is in focus on Thursday, followed by the latest round of PMI reports for Australia. Later in the day, Australian employment data for February will be released, expected to show 30k jobs were added with the unemployment rate expected to edge lower to 4%.
Commodities
To commodities, oil prices were modestly lower on Friday with both WTI and Brent crude -0.27% and -0.09% lower respectively. Iron ore futures were -0.36% softer on Friday, while copper advanced 1.87% after China said it would cut production. Gold finished -0.29% weaker at US$2,155 while silver rose 1.49% and Bitcoin was -3.99% weaker at US$67,859.
Economic Calendar
18th March 2024
China Fixed Asset Investment, Industrial Production, Retail Sales (YoY Feb) 13:00
This article was written by James Woods, Portfolio Manager, Rivkin Securities Pty Ltd. Enquiries can be made via [email protected] or by phoning +612 8302 3632.
