Weekly Market Commentary
The massive rally in US equities, fuelled by the prospect of tax reform, came to a sudden halt Friday. US markets moved sharply lower after reports of trouble on the Trump/Russia investigations. It was reported that General Flynn has admitted lying to the FBI but was ordered to contact the Russians and will so testify! This shocked markets which reversed sharply. There is a lot of water to go under this bridge. Markets will love the tax cuts but any threat to the Trump administration would be deadly. The EUR held 1.1900, while the GBP traded around 1.3500, awaiting details surrounding the 'Brexit Divorce' agreement. Commodity currencies rebounded strongly to close the week. The AUD broke back above 0.7600, while the NZD pushed back toward 0.6900, after the shock sell-off post the devastating Business Confidence report. The new week will reveal trade, manufacturing and growth numbers globally, which will drive the markets. The Political revelations may overwhelm these, including the much vaunted US tax reform and the far reaching implications.
Weekly Market Calendar
4/12 NZ Dairy Auction, Australia Job Ads, US Durable Goods Orders, US Factory Orders
5/12 Australia Consumer Confidence, NZ Commodety Prices, Japan Services/Composite PMI, Australia Current Account, Australia Retail Sales, China Services/Composite PMI, UK/France/Germany/EU Services/Composite PMI, EU Retail Sales, EU GDP, US Trade, US Services/Composite PMI
6/12 NZ Job Ads, Australia GDP, German Factory Orders, US Weekly Mortgage Application
7/12 NZ House Prices, Australia Trade, German Industrial/Manufacturing Production, UK Home Prices, US Weekly Jobless Claims
8/12 NZ Manufacturing, Japan GDP, China Trade Exports/Imports, German Trade Exports/Imports, UK Industrial/Manufacuring Production, UK Trade Exports/Imports, Non Farm Payrolls, US Employment, University of Michigan Sentiment
Paul Bettany
paul@collinsonfx.com
Collinson & Co
0406-744-923