Markets Look Past China, Australia Economic Data Warped by Virus

Markets Look Past China, Australia Economic Data Warped by Virus

Bloomberg  | Aug 14, 2020 03:27

Markets Look Past China, Australia Economic Data Warped by Virus

(Bloomberg) -- Investors continued to shrug at economic data surprises this week in markets including in Australia and China amid distortions caused by the pandemic.

Markets are seemingly inured to occasionally eye-popping gyrations in everything from economic growth to jobs to retail sales data, in the wake of months of social distancing and periodic lockdowns.

The Shanghai Shenzhen CSI 300 -- China’s equity benchmark -- drifted briefly lower before rebounding back to a gain of 0.8% by the afternoon, while the yuan was little-changed Friday, after data showed a less-than-expected 4.8% growth in industrial output in July, and an unexpected 1.1% contraction in retail sales.

On Thursday, the Australian dollar rose 0.1% against the greenback while the S&P/ASX 200 dropped 0.7% despite a strong July jobs report. The data showed employment increasing by 114,700 versus expectations of 30,000, and that the unemployment rate was lower than expected at 7.5%.

Strategists are also digging under the hood of recent reports such U.S. jobless claims and inflation data, warning that headline numbers may not give the whole picture. For instance, John Mauldin, president at investment advisory firm Mauldin Solutions LLC, has previously said that Covid-19 wrought “havoc” on employment data.

The data fog makes it even harder to gauge the outlook for markets, after a rally in asset classes such as stocks, gold, bonds -- even Bitcoin -- from March’s pandemic-induced lows.

 

Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Discussion
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (UK) English (India) English (Australia) English (South Africa) English (Philippines) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 简体中文 繁體中文 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
NoYes
CancelYes
Saving Changes

+

Download the Investing.com App

Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors.

Investing.com is better on the App!

More content, faster quotes and charts, and a smoother experience is available only on the App.

';