Daily Market Commentary 9th December 2021

Global Equities settled overnight, after two big days of recovery rallies. The losses suffered in the previous week, due to Covid mutations, have all but been eliminated and now markets look to gather momentum to attempt to regain record highs. The new mutations appears to be benign and thus relieved markets rallied back. US Bond Yields continue to recover, with the 10 Year regaining 1.5%. The US Dollar took a breather, with the EUR bouncing to 1.1340, while the GBP traded 1.3240.

Commodity demand has also returned and this has boosted the associated currencies. The NZD pushed back above 0.6800, while the AUD broke back above 0.7150. The Bank of Canada left rates and monetary policy unchanged, on a similar parallel to the RBA. Japanese GDP fell further than expected, contracting 3.6% for the last year, although the Tankan report was far more positive.

Market attention may return to growth and inflation for the remainder of the week. Inflation numbers are out for China, Japan and the USA. Inflation will influence monetary policy and thus drive market sentiment.