Daily Market Commentary
Equity markets staged a recovery on Friday, following a week of heavy losses and much volatility. Markets had been buffeted all week by the escalation of the global trade wars, triggered by the USA. Europe has threatened to impose retaliatory tariffs on the US, while the US immediately responded with a potential hike of 200% on European Wines and Spirits. The US have been going back and forth with Canada, in a battle that Canada can only lose. UK GDP contracted 0.1% for January, surprising few and weakening the GBP, which slipped to 1.2910.
The trade exposed commodity currencies experienced some relief on Friday, as market confidence improved. The AUD managed to regain 0.6300, while the NZD consolidates above 0.5700. This coming week welcomes a slew of Central Bank Interest Rate Decisions, lead out by the Fed and including the Bank of England, Bank of Japan, PBoC and the Swiss National Bank. Not much action is expected, although the growing uncertainty of a global trade war, will mean Central Banks will likely err to the downside.
Weekly Market Calendar
17/3 NZ Business PSI, China House Price Index/Industrial Production/Retail Sales, Italy CPI, Empire State Manufacturing Index, US Retail Sales, NAHB House Market Index
18/3 German/EU ZEW Economic Sentiment, EU Trade, Canada CPI, US Building Permits/Housing Starts, NZ Current Account
19/3 Bank of Japan IRD, Japan Industrial Production, EU CPI, US Weekly Mortgage Applications, FOMC IRD
20/3 NZ GDP, Australia Unemployment, PBoC IRD, German PPI, SNB IRD, Bank of England IRD, US Weekly Jobless Claims, US Current Account, Philly Fed Manufacturing Survey, US Existing Home Sales
21/3 NZ Trade Exports/Imports, Japan CPI, EU Leaders Summit, UK Consumer Confidence, NZ Credit Card Spending, EU Current Account, EU Consumer Confidence
Paul Bettany I Collinson Forex Limited Collinson & Co.
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