Daily Market Commentary 29th March 2023

The market spotlight was again on the banking sector, with eyes on Deutsche Bank in Europe and a slew of regional banks in America. The Treasury Secretary Yellen, in the Biden administration, has admitted that the Government cannot bail-out all bank deposit holders, so there will be some ‘preferred banks’. The ‘too big to fail banks’ will be the usual culprits and a final solution to the banking crises may be the consolidation of the banking industry. The ECB have stated this, as a matter of policy, and confirmed the CBDC as the final goal. The S&P Case Shiller Home Price Index remained in negative territory, while the Dallas Fed Manufacturing Index deteriorated. Markets will be looking forward to economic growth and inflation, while bond rates continue to fluctuate. The EUR continues to gain ground, rising to 1.0840, while the GBP rallied above 1.2300.

The softer reserve allowed commodity currencies to rally, with the AUD looking to regain 0.6700, while the NZD approaches 0.6250. Local markets will monitor the latest NZ Business Confidence number, to be released later today, while watching German inflation data and the ECB meeting. There is a lot going on in the markets, at the moment, with volatility set to continue.