Daily Market Commentary 25th April 2023

Markets had a slow start to the week, ahead of key inflation numbers out of Europe and the USA, while GDP data from the US will be monitored closely. The German iFo Business Climate report remained in negative territory, hardly surprising considering the state of business activity in Germany. In the US, the Dallas Fed Manufacturing Index plunged further into negative territory, confirming the struggle for manufacturing in the US and Europe. The Chicago Fed National Activity Index was steady, but negative, showing no signs of improvement. This coming week will be focused on inflation, in both Europe and the US, ahead of next week’s key FOMC meeting. The US Dollar was softer to begin the week, with the EUR rising to 1.1050, while the GBP pushed back to 1.2470.

Australia and NZ markets had a quiet start to the week, ahead of the ANZAC commemoration today, when markets will be closed in Australasia. The recessionary fears are starting to impact commodity demand, keeping the AUD below 0.6700, while the NZD trades around 0.6150. Local markets will spark up again Wednesday, with Australian CPI numbers set to be released, which will have an enormous impact on the RBA in next weeks rate decision. If inflation remains stubbornly high, then the RBA’s ‘pause’, will be brief indeed. NZ markets will focus on Trade and Business Confidence.