Daily Commentary 01/10/2014

Equity markets continued to decline after data revealed a steep drop in US Confidence, which fell from 93.4 to 86, reflecting the reality of the economy on the ground. The S&P Case Shiller Home Prices also managed to drop although remained higher on an annual basis. Equities are under close scrutiny with the Fed on…

Daily Commentary 30/09/2014

After starting down on the previous week the NZD took another turn for the worse yesterday. The release of the RBNZ FX transaction figures for August showed the bank had sold NZ$521m in August. This is the largest single month sell off of the NZD since 2007. This was reflected strongly and quickly in the…

Daily Commentary 29/09/2014

Markets rebounded to close the week stronger after heavy losses the previous trading day. Equities recovered, but remain down for the week, while the safety of the USD was enhanced by growth data. US GDP, jumped 4.6%, annualized for the second quarter. This immediately boosted market confidence and alleviated recent fears. The Dollar was even…

Daily Commentary 26/09/2014

Markets tumbled overnight, hit hard by Central Bank activity and Geo-Politics, boosting the safety value of the Dollar. The NZD crashed after threats of intervention by RBNZ Governor Wheeler. He jawboned the currency lower commenting the currency was ‘unjustifiable and unsustainable’. He cited recent falls in commodity prices had not been reflected in the KIWI…

Daily Commentary 25/09/2014

Stocks rebounded after a three day run of negatives. It must be remembered that all the bad news is still counterbalanced by Central bank extra mural activity. It was this realization and some good news on the housing front that spurred equities to reverse recent losses. New Home Sales surged 18%! This contradicted all recent…

Daily Commentary 24/09/2014

An ocean of red ink engulfed markets from Asia through Europe and onto the USA. The trigger for this was disappointing Chinese and European Manufacturing data setting in place a wave of negativity. The Chinese Manufacturing PMI held above 50 but was weak enough to hit an already beaten commodity market. The effect on commodity…

Daily Commentary 23/09/2014

Chinese Finance Minister yesterday quelled speculation of a flood of monetary stimulus, despite deteriorating economic conditions, sending equities and commodities lower. This did little for the embattled AUD, which fell to 0.8870, under extreme pressure with the collapse in commodity prices. The NZD was also under stress, testing 0.8100 on the downside, counter balanced by…