Daily Market Commentary 25th April 2024

Markets settled overnight, with both European and US equities, following recovery gains earlier in the trading week. US markets await key data, with US GDP growth data set to be released tonight, while PCE inflation numbers will come out tomorrow. Growth data is expected to remain positive, but take a haircut, while PCE inflation is expected to spike back up. It is the inflation that concerns the markets, as the Fed has been clear that rate cuts will be delayed, until this is back under target levels. The US Dollar was steady, with the EUR dipping back below 1.0700, while the GBP held onto to recent gains, trading around 1.2450.

Commodity currencies held ground, with the AUD approaching 0.6500, while the NZD retains 0.5900. Australian inflation fell back to 3.6%, from 4.1%, which was not as great a fall as expected. Inflation remains stubbornly high, well above targets set, despite the tight monetary conditions. Inflationary pressures from fiscal realities and record mass immigration, only add to pressures across the economy. NZ Trade data revealed some good news, with a rare and welcome trade surplus in March, reflecting a surge in exports, while imports drifted lower. Australian and NZ markets are closed for ANZAC Day commemorations, lest we forget.