Daily Market Commentary 11th September 2024

European equity markets dipped lower, dragged down by German Automakers, while US markets consolidated early week gains. German CPI inflation came down to 1.9%, in line with forecasts and withing the desired levels. The inflation problem appears to be tamed, for the short term, allowing the ECB to cut rates further and stimulate recessionary economies. The hope will be that the recessionary pressures are not prevalent and persistent, driving deflation. Markets will focus on US inflation, due to be released tonight, along with a slew of UK economic data releases. The Dollar remains bid, with the EUR drifting to 1.1020, while the GBP slipped to 1.3050.

The stronger reserve helped keep the pressure on commodity currencies, with the AUD falling back to 0.6640, while the NZD dropped to 0.6130. Chinese trade data confirmed impressive gains for imports and expansion of the trade surplus. These bode well for future commodity demand.