Daily Market Commentary
Market sentiment turned negative, over the weekend, following the announcement of tariffs on the EU. President Trump announced a 50% tariff on all EU products, commencing 1st of June, as the opening volley in the renewed trade war with the single market. The implementation date, was later reviewed to 9th July, following consultations. This sent markets into a renewed sell-off in equities, while the currencies remained steady. The EUR traded just below 1.1400, but may be vulnerable, while the GBP managed to regain 1.3500.
The NZD accelerated into the new week, with an all-out assault on 0.6000, while the AUD is fast approaching 0.6500. The commodity currencies are in favour, but remain vulnerable, to extended trade wars. Neither NZ or Australia have secured trade agreement with the US and when Trump is finished with the big fish, he will be knocking on our door.
Dates & Headline
26/5 Memorial Day Holiday in the USA, Japan Leading Index
27/5 German Consumer Confidence, France CPI, EU Consumer Confidence, US Durable Goods Orders, S&P Case-Shiller House Price Index, US Consumer Confidence, Dallas Fed Manufacturing Index
28/5 Australia CPI, RBNZ Interest Rate Decision, France GDP, German Employment, US Weekly Mortgage Applications, Richmond Fed Manufacturing Index, FOMC Minutes
29/5 NZ Business Confidence, Japan Consumer Confidence, US Weekly Jobless Claims, US GDP, US Pending Home Sales
30/5 NZ Consumer Confidence, NZ Building Permits, Tokyo CPI, Japan Employment/Industrial Production, Australia Building Permits, Australia Retail Sales, German Retail Sales, France GDP/CPI, German CPI, Canada GDP, PCE Inflation Indicator, US Personal Income/Spending, Chicago Fed PMI, University of Michigan Economic Senitment
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