The distribution of John & Johnson ‘vaccine’, was paused overnight in the USA, due to some worrying blood clotting in recipients. This is the latest in the problems of available vaccines, which questions the side effects and effectiveness of these drugs. This was enough to disturb markets in the US, with equities and the US Dollar lower. The much awaited CPI number was higher than expected, coming in at 2.6% p.a., which is a sign of a building inflation. The EUR jumped to 1.1940, while the GBP traded 1.3740, after numbers reflected a severe contraction in Industrial and Manufacturing production in the UK.
The trade exposed commodity currencies were beneficiaries of the softer reserve, with the AUD pushing back to 0.7640, while the NZD regained 0.7050. The RBNZ announces their monetary policy decision today, which will leave rates unchanged, but may excite markets with the oratory. The RBNZ will promise continued QE and monetary support, but may excite markets by addressing inflationary pressures. NZ Business Confidence fell further, contracting by minus 13, while the Australian Business confidence was positive 15.
The all important ZEW Economic Sentiment reported in Europe was terrible in both Germany and the EU, reflecting the hazardous state of sentiment, amid the long-suffering lock-downs and terrible problems associated with the vaccine roll-out. The vaccine roll-out issues may turn out to be a positive?