Daily Market Commentary 16th November 2021

Markets opened the trading week quietly, as the dust settled from last weeks inflation and economic sentiment reports. Inflation in the US is now at a 30 year high, while the University of Michigan Economic sentiment report, was at a 10 year low. The supply chain crises and the energy crises are all adding up to some challenging economic times. Inflation will force the Fed into action, cutting QE and raising rates, which will impact the share markets. The US 10 Year Bond Yield is creeping higher, breaking though 1.6%, which lends support to the diluted US Dollar. The EUR fell below 1.1400, while the GBP looked to hold above 1.3400.

Japanese Industrial Production contracted 2.3% and forecast GDP growth turned sharply negative. Chinese Industrial Production increased by 3.5%, while Retail Sales jumped 4.9 %. These economies appear to be heading in opposite directions, but both are under pressure from a global energy crises. The NZD held above 0.7000, while the AUD pushed back towards 0.7350, ahead of the RBA minutes to be released today.