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OPEC to the rescue, Democrats approach Super Tuesday, US Nonfarm Payrolls and more on Covid-19

Welcome to your guide to the week ahead in the markets. Watch the latest week ahead video in XRay on the platform now.

OPEC to the rescue?

Oil has been hammered as the coronavirus forced factories across China to cease production and grounded flights across the globe. China is coming back online now, but crude inventories have been building amid the demand drop-off and we could be facing shutdowns in other parts of the world if the virus continues to spread.

Crude and Brent fell to their lowest levels in over 12 months last week, but hope remains that OPEC will ride to the rescue when it meets on Thursday and Friday. The current pact to cut production by 1.7 million barrels per day expires at the end of this month. There is talk of extending the deal and cutting production by another 600,000 barrels per day, but it is uncertain whether cartel ally Russia will agree to such a move.

Caixin PMI

Chinese manufacturing came back online towards the end of February, with travel data showing a larger-than-expected number of workers were able to leave their hometowns and return to work after the extended Lunar New Year holiday. The number of people travelling at the end of the month was still well below usual post-holiday levels, however. Even businesses that have reopened are facing labour shortages, supply chain disruptions, and weak demand. This week’s Caixin Manufacturing PMI will be a key measure as economists slash growth expectations and markets look for clues over how severe the economic impact of a large-scale outbreak in the US or Europe could be.

Democrats approach Super Tuesday

This week will give markets a clearer indication of which Democratic candidate is likely to challenge President Trump in this year’s election. 14 states are due to hold primaries on ‘Super Tuesday’. Only 100 delegates were assigned during three primaries last week, with Bernie Sanders securing almost half of those. A strong performance on Super Tuesday would cement his position as the frontrunner – the number of delegates up for grabs on Tuesday alone is around a third of the nearly 4,000 needed to secure the nomination. Bernie is the worst outcome as far as the markets are concerned due to his socialist policies, so any shift in voting towards more moderate candidates like Joe Biden could see markets breath a small sigh of relief.

US nonfarm payrolls

Usually the highlight of the economic calendar, this month’s nonfarm payrolls may not be so impactful. The monetary policy outlook is currently ruled by coronavirus headlines – markets are betting on a rate cut in April, if not this month, and a solid set of jobs numbers would be unlikely to materially shift those expectations. Markets are thinking about the potential economic impact of a large-scale Covid-19 outbreak in the US, so backwards-looking data may not settle many nerves

Heads-Up On Earnings

2nd March – 01.45 GMTChina Caixin Manufacturing PMI 
2nd March – 08.15-09.30 GMTEurozone / UK Finalised Manufacturing PMIs 
2nd March – 15.00 GMTUS ISM Manufacturing Index 
3rd March – 03.30 GMTRBA Official Cash Rate Decision & Statement 
3rd MarchBeiersdorfQ4 2019
3rd March – 10.00 GMTEurozone Flash CPI Estimate 
3rd March – After MarketHewlett Packard EnterpriseQ1 20202
4th March – 00.30 GMTAustralia Quarterly GDP 
4th March – 07.00 GMTDS SmithQ3 Trading Update
4th March – 08.15-09.30 GMTEurozone / UK finalised Services PMIs 
4th MarchLegal & GeneralQ4 2019
4th March – Pre-MarcketDollar TreeQ4 2019
4th March – Pre-MarketCampbell SoupQ2 2020
4th March – 15.00 GMTBank of Canada Interest Rate Decision and Statement 
4th March – 15.00 GMTUS ISM Non-Manufacturing Index 
4th March – 15.30 GMTUS EIA Crude Oil Inventories Report 
4th March – After MarketZoom Video CommunicationsQ4 2020
5th March – 00.30 GMTAustralia Trade Balance 
5th March – All DayOPEC Meeting, Vienna 
5th March – Pre-MarketKrogerQ4 2019
5th MarchAvivaQ4 2019
5th March – 15.00 GMTUS EIA Natural Gas Storage Report 
5th March – After MarketCostco Wholesale CorpQ2 2020
6th March – 00.30 GMTAustralia Retail Sales 
6th March – All DayOPEC+ Meeting, Vienna 
6th March – 13.00 GMTUS Nonfarm Payrolls Report 

Watch The Week Ahead on XRay

Highlights on XRay this week:
Daily –  08:15 GMT
European Morning Call  Free Register       

March 2nd – 15.00 GMT
The Trendsignal Podcast  Free Register    

March 3rd – 10.00 GMT
FXTrademark Course: Trading Strategies  Free Register       

March 4th – 10:00 GMT
FXTrademark Course: 10 Laws of Trading  Free Register       

March 6th – 13:00 GMT
Live Trade Setups with Mark Leigh Free Register

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