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Collinson’s remains operational as normal during NZ Level 4 Lockdown. Please contact your dealers via Phone, email, text or via our app

Daily Market Commentary 7th September 2021

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US Markets were closed for the Labour Day holiday, so European markets were able to digest Fridays Non Farm Payroll number, from the States. The addition of only 235,000 jobs, when 720,000 was expected, was a shock to markets. European share markets rallied on the news, as this will probably allow the Fed to defer any tapering of QE and ensure record low rates, for a further extended period. Equity markets rallied on the news, while the USD continued recent weak form. The EUR traded 1.1860, while the GBP pushed up to 1.3830, despite weak economic data. UK New Car Sales collapsed by 22%, while German New Car Registration dropped 23%, which is a combination of supply/manufacturing issues and demand.

Commodity currencies remain beneficiaries of the weak reserve, with the AUD trading 0.7420, while the NZD holding above 0.7100. The local markets await todays RBA interest rate decision, which is widely expected to keep rates and QE unchanged. The lockdowns blighting the Australian and NZ economies, will only ensure the need for further fiscal and monetary stimulus. The economic data will reflect the bleak outlook.

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