Instability and volatility continue to characterise market trade overnight. European equity markets plunged, following weak flash PMI data, while US equities staged a dramatic recovery throughout the days trade. US flash PMI was weaker than expected, while New Homes Sales contracted 16.6%, continuing the trend of doom in this key leading index. The Davos conference gathered world political and business leaders for the World Economic Forum, where globalism outlines the new world order. The airport will be full of private jets and limousine companies around Europe will be feasting on this gathering of the elites, highlighting that global warming mitigation is for the masses . They will discuss the means to which they can deliver global ‘happiness without private ownership’. The US Dollar continues to soften, with the EUR trading above 1.0700, while the GBP holds above 1.2500, despite weaker than expected flash PMI data.
Commodity currencies held up, thanks to the softer reserve, with the AUD just below 0.7100, while the NZD trades around 0.6450. Australian flash PMI data was weaker than expected, as markets keenly await the new Labor Governments economic direction, still without any significant blueprint. The RBNZ will announce the latest rate decision and they are expected to raise rates by 50 basis points, chasing the inflation dragon. NZ Retail Sales crashed in Q1, confirming the damaging impact inflation and rising interest rates are having on the consumer, which points to a looming recession.