Daily Market Commentary 9th June 2021

Markets were flat overnight, awaiting the ever more important US CPI number, out Thursday. European markets were steady, as GDP contracted 0.3% for Q1, or an annualised 1.3%. This was better than expected, considering the lock-downs suffered, for so long. The surprise number was German Industrial Production, which contracted 1%, sending warning signals to markets. German and EU ZEW Economic Sentiment fell significantly, pointing to a problem, which will be monitored closely. The EUR traded 1.2180, despite the bad data numbers, while the GBP held 1.4150.

Japanese GDP contracted 3.9%, better than the expected 4.8% slump, but still a dreadful number. Commodity currencies drifted lower, with the NZD falling back below 0.7200, while the AUD slipped to 0.7730. Australian business confidence dipped to lower than expected and todays NZ Business Confidence may be a local market mover?