Daily Market Commentary 8th August 2023

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US equities rebounded strongly overnight, wiping out much of last weeks losses, setting the stage for another volatile week of trade. German Industrial Production contracted further, while UK House Prices continue to tumble, as rising interest rates take effect. Markets will closely watch Chinse trade data today and German inflation data, set to be released tonight. The de-industrialisation of Germany, the engine room of Europe continues and this threatens the economic well-being of the whole Eurozone. Speculation over inflation and growth will continues, but the Federal Reserve does not meet until September, so the pressure is low. The EUR traded below 1.1000, while the GBP holds steady, trading around 1.2750.

Australian Job ads jumped into the positive, while the labour market contributes to inflationary pressures, it will be less of a problem with the huge increase in immigration planned over the coming 24 months. The reserve was steady, with the AUD trading above 0.6550, while the NZD attempts to regain 0.6100.

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