Weekly Market Commentary
Markets fizzled out to close the week flat but up for the week and down for the month. It has been another week of volatility, post the drama of the previous G7/Jackson Hole dominated theatre, but it seems President Trump can spark activity. The US/China trade war continues to dominate the global economic narrative and the resumption of talks have blunted the negatives. The Dollar continues to rally , despite retarded bond yields, although the differential remains positive.
European markets have been consumed by the Brexit crises over the last week. UK PM BOJO has thrown a cat among the pigeons, by proroguing Parliament, to enable the 'No Deal Brexit' to eventuate. The No Deal Brexit is no becoming a probability rather than a possibility. This is sending the EU into panic mode. The EU have relied on a pro-EU UK Parliament, to defy the will of the people, but it seems Boris has come up with a solution. It remains a bitter irony that the UK Parliament must be suspended to enact the will of the people, but that is what it has come to and it is a sad reflection of modern Western democracies. The EUR collapsed, to trade 1.0990, while the GBP has slipped back to 1.2170.
Commodity currencies have been seriously damaged by the fury of the US/China trade war escalation and remain at record lows. The AUD trades 0.6740, while the NZD attempts to hold 0.6300, both looking extremely vulnerable. Spring in the Southern hemisphere appears to be one of the few positives embracing markets.
Weekly Market Calendar
2/9 Australia Manufacturing PMI, NZ terms of Trade, NZ Dairy Auction, China Manufacturing PMI, Australia Commodity Prices, Italy/France/UK/Germany/EU Manufacturing PMI
3/9 Australia Consumer Confidence, US Manufacturing PMI, ISM Manufacturing/Employment
4/9 Australia Services/Composite PMI, NZ Commodity Prices, Australia GDP, China Services/Composite PMI, UK/Italy/France/German/EU Services/Composite PMI, EU Retail Sales, US Trade Exports/Imports, Bank of Canada Rate Decision, Fed's Biege Book
5/9 Australia Trade Exports/Imports, German Factory Orders, Challenger Jobs Report, ADP Jobs Report, US Services/Composite PMI, US Factory Orders, US Durable Goods Orders
6/9 German Industrial Production, EU Employment, EU GDP, Non-Farm Payrolls, US employment
Paul Bettany
Collinson & Co
0406-744-923