Daily Market Commentary
Markets were directionless and soft overnight, following a tumultuous week of crises management. Equities are looking to stabilise following the post- US CPI triggered collapse, while Bond Yields continue to rise, in an inverted yield curve. Oil prices and gold are both softer, but these have a solid and high support base. US Retail Sales remained positive, surprisingly, and probably only due to the tight labour market and amount of liquidity washing around the economy. The US Dollar remains well supported, as a safety destination, with the EUR trading 0.9990, while the GBP fell to 1.1470.
Australian Employment was softer than expected, but only marginally off record lows, rising to 3.5%. NZ GDP popped to 1.7% for Q2, with a revision upwards of the previous quarter(Q1). This was a boost to local markets but failed to impress the currency markets, with the NZD falling to 0.5960, while the AUD looks set to test 0.6700.
Markets will look towards inflation data out in Europe, later in the day, while the important ‘University of Michigan Economic Sentiment’ report is released later in the US.