Daily Market Commentary
Markets closed out the last week on a nervous note, with many balls in the air, although the tech-heavy NASDAQ closed at record highs. The US Presidential Elections are the big uncertainty, impacting markets, and the rise in US Bond Yields and the US Dollar may be reflecting that. The BRICS Summit also was completed, with the revelation of a whole new global trading system. The plans are in place and working groups are looking to finalise and implement over the next 12 months. The new trading system will include payments systems, commodity trading platforms, banking and finance, insurance and more. This is a comprehensive alternative to the current Western systems of SWIFT, US Dollar, IMF/World Bank, Insurance etc. There is an awful lot going on in the world that can, and will impact markets, so it is no surprise there is a lot of nerves. The flight to safety of the US Dollar has pushed the GBP back below 1.3000, while the EUR test 1.0800, to the downside.
Commodity currencies have also been battered by the rising reserve, with the NZD slipping back below the important psychological 0.6000, while the AUD may test the downside of 0.6600. The coming week will see an avalanche of economic data around the world, including GDP growth, inflation and the measures of US Labour market. Markets will be preoccupied by the looming Presidential Election. Japan also has an election, this weekend, and this will be followed by the Bank of Japan meeting and making their monetary policy decision. Note the Yen is heading back to July 2024 lows, when the Bank of Japan was forced to intervene.
Weekly Market Commentary
28/10 Dallas Fed Manufacturing Index, Japan Leading Index, Japan Employment
29/10 German Consumer Confidence, US Trade, S&P Case-Shiller Home Price Index, US Consumer Confidence, Jolts Jobes Report
30/10 Australia CPI, Japan Consumer Confidence, France GDP, German GDP, German Employment, EU Consumer Confidence, Italy GDP, EU GDP, US Weekly Mortgage Applications, US GDP, German CPI, ADP Jobs Report, US Pending Home Sales, Japan Industrial Production
31/10 NZ Business Confidence, Australia Building Permits, China Manufacturing/Non-Manufacturing PMI, Bank of Japan Rate Decision, German Retail Sales, UK House Prices, France CPI, EU CPI, EU Employment, Italy CPI, Challenger Jobs Report, Canada GDP, US Weekly Jobless Claims, China PMI, NZ Building Permits, Australia Manufacturing PMI
1/11 Australia PPI, Australia Commodity Prices, Non-Farm Payrolls, US Employment, UK Manufacturing PMI
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