Collinson Weekly Market Commentary and Calendar

Weekly Market Commentary

Negative sentiment closed out the week of trade on global markets, with equities tumbling and the US Dollar on the rise. Equity markets are being buffeted by the regional banking crises in the US, which is destroying confidence and sentiment. Inflation remains at stubbornly high levels in Europe and US Core Inflation does not appear to be easing. Food inflation pressures are coming into focus as the energy crises has a hiatus. Food inflation is a direct result of higher energy/fertilizer prices, and supply. The Western sanctions are seriously impacting the imposers of the sanctions, rather than the recipients. Meanwhile the European 'green agenda' has been the catalyst for the energy crises, setting the environment to thrive, while the green agenda now seeks to close down productive farming and killing food supply. The rising US Dollar pushed the EUR back to 1.0850, while the GBP crashed to 1.2450, following the release of a benign GDP number. It is amazing that all over Europe, the measure of a technical recession is 'two consecutive quarters of negative GDP growth' and magically most of these countries appear to achieve 0.1%, nearly every quarter. There is no such thing as 'coincidence'. The data is about as reliable as global employment data.
 
Commodity currencies suffered further pain as the reserve pushes north. The high-flying NZD has crashed back below 0.6200, while the AUD tumbles toward 0.6600. Commodity prices are under demand pressure as recession pressures rise. The coming week will continue to focus on growth and inflation, thus interest rates. The Banking Crises will be the elephant in the room.

Weekly Market Calendar

15/5 NZ Services PSI/NZ Composite PCI, Japan PPI, Australia Building Permits, EU Industrial Production, Empire State Manufacturing Index
 
16/5 Australia Consumer Confidence, RBA Minutes, China Industrial Production/Retail Sales/Employment, Japan Employment, EU Finance Meeting, EU GDP, German/EU ZEW Economic Sentiment, Canada CPI, US Retail Sales, US Industrial/Manufacturing Production
 
17/5 NAHB House Market Index, NZ Dairy Prices, Japan GDP/Industrial Production, France Employment, EU CPI, US Weekly Mortgage Applications, US Building Permits/Housing Starts
 
18/5 NZ PPI, Japan Trade Exports/Imports, Australia Employment, US Weekly Jobless Claims, Philly Fed Manufacturing Index
 
19/5 US Existing Home Sales, NZ Trade Exports/Imports, Japan CPI, NZ Credit Card Spending, German PPI

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