fbpx

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 9th September 2021

Share This Post

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

European markets await the ECB rate decision, which is expected to leave monetary policy (QE) in place and rates unchanged. The Bank of Canada did exactly that overnight, warning of yet another round of virus infections and the associated economic/social problems. US Total Vehicle Sales fell from 14.8 million to 13 million, in the latest data released, confirming global supply and production issues. US Job openings were up to nearly 11 million, confirming the dislocation in the economy caused by excessive and over-extended unemployment payments to workers, incentivising ‘not working’. The Government, in many cases, is not just part of the problem, but is the problem. The EUR drifted to trade 1.1820, while the GBP slipped to 1.3770, following Government plans to increase taxes on an already overburdened and challenged nation.

Japanese GDP numbers were better than expected, but come off a very low base, reflecting larger structural problems await. The commodity currencies have continued to lose ground after recent rallies, with the NZD falling below 0.7100, while the AUD fell back to 0.7350. These economies are being crushed with totalitarian lockdown rules, imposed by risk-averse, feckless and obdurate regimes.

Markets a looking ahead to the ECB meeting and the associated narrative.

Collinson & Co Contact