Daily Market Commentary 23rd February 2023

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Global equities zoomed to record highs, with Japan leading the way and Europe and the US markets following suit. Equities surged on some positive Services PMI data out of Europe, and a massive beat in Nvidia profits in the US. Services PMI in Europe moved back to expansion mode, boosting market confidence, although the German Manufacturing PMI remains in deep contraction mode. German manufacturing continues to suffer destructive de-industrialisation, as the high energy prices destroy the cheap energy fuelled industry, of the last couple of decades. Equities rallied to record levels, boosted by prospects of lower interest rates and a successful inflation war. The US Dollar was steady, with the EUR trading around 1.0800, while the GBP traded up to 1.2650.

Commodity currencies continued to prosper, with the resurgent NZD heading back towards 0.6200, while the AUD trades around 0.6550. NZ Trade data is on the improve, boosted by surging exports, while Imports remain constrained. European inflation continues to fall so all signs are positive, although there are many threats, especially on the Geo-Political fronts.

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