Daily Market Commentary 1st October 2024

Chinese PMI data showed some improvement, but remained in contraction territory, although markets expect improvement following the monetary stimulus from the Peoples Bank of China. Japanese Industrial Production was of real concern, plummeting 4.9%, on an annualised basis. European equity markets turned into negative territory, for the final trading day of September, enthusiasm dampened by recessionary conditions. German inflation continues to benefit these recessionary economic conditions, falling to an annualised 1.6%, with expectations of further rate cuts from the ECB. UK Q2 GDP came in at 0.5%, slightly less than expected, but in positive territory. The EUR rallied but ultimately drifted lower, trading 1.1150, while the GBP held 1.3400.

The softer reserve allowed the NZD to break above 0.6350, while the AUD consolidates above 0.6900. NZ Business Confidence surged higher, jumping to 60.9, proving sentiment has turned while historical economic measures remain weak. Markets will look at PMI data across Asia, Europe and North America, while keeping a close eye on US labour market reports.