Daily Market Commentary 22nd July 2021

Share This Post

The share market rebound in the US continued overnight, all but wiping out the massive losses suffered, Monday night. The cause of the sell-off was listed as the growing virus resurgence and underlying inflation. Nothing has changed, except sentiment and perceptions. US Weekly Mortgage Applications contracted 4%, while corporate earnings are largely beating expectations. The EUR inched back towards 1.1800, ahead of the ECB meeting tonight, while the GBP bounced back above 1.3700.

Australian Retail Sales contracted 1.8% as much of the country remains under lock-down, while politicians strive for the impossible elimination strategy against the ‘Delta’ strain of the virus. The AUD struggles below 0.7350, awaiting PMI data and more virus pain, while the NZD flounders around 0.6950. The pandemic has caused massive damage to global economies, due mainly to incompetent political leaders, which is one revelation that has been reinforced.

Look towards the ECB meeting tonight to provide some interest, although the Bank will not adjust interest rates or QE, but perhaps the associated commentary may stir some enthusiasm?

Collinson & Co Contact