Daily Commentary 05/05/2016

Equity markets continued to shed ground, as economic data underwhelmed, driven by a static Europe and US flux. EU Retail Sales contracted 0.5%, while services PMI drifted lower, giving little to boost confidence. In the US, ADP Jobs reported lower private sector jobs, confirming the anemic state of the economy. There has been little to…

Daily Commentary 04/05/2016

The big news in local markets was the RBA decision, followed by the pre-election Budget. The RBA caught the markets by surprise, cutting the rate by 0.25%, to 1.75%. This was not unexpected, but with the Bank of Japan and RBNZ, resisting the urge to act was anticipated. The AUD was slammed hard, falling from…

Daily Commentary 03/05/2016

Equities rallied to open May, contradicting the age old adage, ‘Sell in May, go away!’. ISM Manufacturing data in the US was softer, following the Chinese lead, in line with expectations. The Dollar did not find any support, with the EUR hitting 1.1500, while the JPY traded 106.50! Commodity currencies also found some heart, reflecting…

Daily Commentary 02/05/2016

The fallout from the Bank of Japans inaction reverberated through markets to close the week. The Yen continued to rally strongly, pushing towards 106.50, punishing the Governor. Currency wars continue unabated and the BoJ missed a trick. The compulsion to add further QE is immense and the consequences are playing out with asset bubbles. The…

Daily Commentary 29/04/2016

Central Banks continued to dominate currency markets, with the Bank of Japan shocking markets, by refusing to add to expected action. Governor Kuroda resisted the much anticipated expansion of Monetary Policy and the Yen surged. The JPY went from 111.50 to 108.00, the rally reflecting the surprise markets suffered, despite some sobering economic data. Japanese…

Daily Commentary 28/04/2016

The FOMC meeting concluded as expected, with no change to the QE, but language suggesting a future rise. The Fed left out the previous ‘risk poses’, in the description of the global economy, setting up speculation for the much telegraphed interest rate rises. This is no surprise because global fiscal ineptitude and growth conditions remain…

Daily Commentary 27/04/2016

Markets were in a state of limbo as the Fed sat down for their scheduled two day meeting. There are high indications of the status quo, continued QE and no rate rise, as economic data remains soft. Growth has been benign, globally, although there are green shoots in the commodity sector. The Obama tour of…