fbpx

Daily Market Commentary 8th October 2021

Share This Post

Share on facebook
Share on linkedin
Share on twitter
Share on email

Global equities and risk appetite came roaring back overnight. News of a temporary deal to suspend the US debt ceiling, triggered a wave of market relief and global equities surged, wiping out previous losses. Markets will now be laser focused on the Non Farm Payrolls report, out tonight, which will be a good indicator as to how the Federal Reserve will act. The US Challenger Jobs reported cuts in line with expectations, while weekly jobless claims were lower than expected. The ADP Jobs report, showed a strong improvement in private sector jobs, which all portend well for the Non Farm Payrolls. A strong report will lead to speculation that the Fed will begin their long promised, QE tapering program. The USD was softer, with the GBP trading above 1.3600, while the EUR traded 1.1550, despite some dire German Industrial Production news. German Industrial Production contracted by a substantial 4%, which is a huge hit to the European engine room, unsurprisingly put down to supply chain issues.

The wave of improved sentiment swept through the commodity currencies, with the AUD surging to 0.7310, while the NZD ploughed though 0.6900. The devastating lockdowns in New South Wales are about to come to an end, with the election of a new Premiere, freedom day is anon in the most populus State in Australia.

All eyes turn now to the US Non Farm Payroll number, to be released tonight.

Collinson & Co Contact