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US and UK Markets were closed for Memorial Day holidays and the Spring Bank Holiday, respectively. European markets were open and trading in a positive frame, with equities booking big gains, as confidence returns. European countries are re-opening after the lock-down, without any major spikes in the virus, thus reassuring citizens. German GDP contracted 2.3%, confirming the dire impact of the lock-down, but these are historical numbers and will only improve from here.

Commodity currencies were steady, with the AUD trading 0.6545, while the NZD attempted to regain 0.6100. Markets are enjoying the re-opening of the economies, but are carefully watching developments in China. China has been actively threatening Australian exports, in the form of coal and barley, in retaliation for calls for an investigation into the source and cause of the virus. Markets are also watching the political developments and disruption in Hong Kong, as the Chinese attempt to pass laws suppressing autonomy.

Trade wars look to be the biggest threat to global markets, as the virus appears to be contained and under control.

Collinson & Co Contact