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Daily Market Commentary Markets experienced another volatile week, losing some ground in equities, while Oil prices attempted a recovery. The global lock-down of economies, due to the spread of the 'coronavirus', has crashed demand for oil and Saudi Arabia and Russia have seized the opportunity. They have decided to increase production, to tank the price, in an attempted coup on higher priced oil producers. President Trump has begun negotiations to end the price war, in an effort to save US energy companies and a key US industry.
The coronavirus spread continues as Europe approaching the 'apex' and the US follows a couple of weeks behind. Preparations are being made for mass deaths across both continents and Australia and New Zealand will follow their timeline. This is the eye of the storm and markets now look for the light at the end of the tunnel. Markets are looking for certainty, in terms of the control and containment of the virus, so economies can begin to return to some form of normalcy.
The safe haven of the US Dollar remains valid, with the EUR falling to 1.0800, while the GBP dropped to 1.2270. Commodity currencies regained some lost ground, earlier in the week, but resumed the downward slide to close out the week. The AUD attempt to hold 0.6000, while the NZD crashed below 0.5900, seemingly vulnerable to market conditions.
This coming week will depend heavily on containment of the virus and the impact on global economies.
Weekly Market Calendar 6/4 NZ Commodity Prices, Australia Job Ads, German Factory Orders, German Construction
7/4 Australia Consumer Confidence, Australia Trade, RBA Cash Rate, Japan Leading Index, German Industrial Production
8/4 Japan Trade, Japan Current Account, US Weekly Mortgage Applications
9/4 NZ House Sales, FOMC Minutes, German Trade, German Current Account Exports/Imports, UK Industrial/Manufacturing Production, UK trade, UK Industrial/Manufacturing Production, US Weekly Jobless Claims
10/4 University of Michigan Economic Sentiment, China CPI, US CPI Paul Bettany Collinson Forex Collinson & Co Mobile 0406-744-923 |