Markets rallied strongly, to open the new week, building on record gains in the previous week. The S&P and Nasdaq built on historical highs while the Dow is looking to take out pre-pandemic highs. The economic data releases are few and far between so the narrative continues from the previous week. Markets rallied strongly and the Dollar held onto gains, with the EUR trading 1.1780, while the GBP hit 1.3050.
New Zealand Retail Sales contracted 14.6%, for the quarter and 14.2 on an annualised basis. This was a surprising number considering global consumption. The problems do not end there, with rising cost of living pressures and supply chain challenges. The lock down in Australia and New Zealand are a major road block to the economic recovery.
The major events that will hurt economic recovery, the pandemic and the US/China relations appear to be contained.