Collinson Weekly Market Commentary and Calendar

Weekly Market Commentary

Markets closed the week out flat, but bond yields appear to be on the rise again, as do energy prices. Natural Gas prices spiked, as Oil has done recently, sparking fears of energy prices adding to inflationary pressures in Europe again, this coming winter. This will only add to inflationary pressures, bond yields and recession. Oil production cuts have been extended from both Russia and Suadi Arabia, until the end of the year, so Oil looks set to continue to rise. The rise in US Bond Yields (in an extended inverted yield curve) have supported a resurgent US Dollar, pushing the EUR back to 1.0700, while the GBP has slipped to 1.2450.
 
The rising reserve has eased the AUD back to 0.6370, while the NZD has dropped back to 0.5860. A labour strike in the Natural Gas facility in Western Australia is having global repercussions, with spikes in the European natural gas futures price. Energy prices are on the rise, which will only add to inflationary pressures in Europe. Chinese commodity demand has been slow, as the much-vaunted economic rebound, has stuttered. The week ahead will focus on inflation, energy and growth. The ECB will announce their latest monetary policy decision this coming week, and they are expected to hold interest rates at current levels. The heat will be on Central Bankers as energy prices rise.

Weekly Market Calendar

11/9 Denmark/Norway CPI, China Vehicle Sales, Italy/Belgium Industrial Production
 
12/9 NZ Credit Card Spending, Australia Consumer Confidence, Australia Business Confidence, UK Employment, Spain CPI, German/EU ZEW Economic Sentiment, NFIB Small Business Optimism, German Current Account
 
13/9 NZ Food Inflation, Tankan Report, Japan CPI, UK GDP/Trade, UK Industrial/Manufacturing Production
 
14/9 Australia Employment, Japan Industrial Production, ECB Rate Decision, US PPI, US Retail Sales, US Weekly Jobless Claims
 
15/9 NZ Business PMI, China Industrial Production/Retail Sales/Employment, German Wholesale Prices, France CPI, EU Trade, University of Michigan Economic Sentiment

PLEASE NOTE THE VIEWS EXPRESSED IN THIS COMMENTARY ARE THOSE OF THE AUTHOR AND NOT COLLINSON & CO

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