There was little out in the way of economic data overnight, so equities reverted to the norm, rallying strongly. Good news usually means monetary constipation, while weak and accurate data, results in speculation of further monetary stimulus. The recovery never happened and now reliance on monetary policy belies fiscal ineptitude. The EUR hit 1.1400, while…

Equity markets were flat overnight after mixed economic news across Europe and the US failed to inspire. US Retail Sales were flat, although March was revised up, putting the brakes on an early rally in equities. German, French and EU GDP growth came in around 1%, no more than expected, reflecting the insipid nature of…

Markets slipped overnight, with some profit taking, as little was going on in markets overnight. The Dollar also slipped with the EUR moving up to 1.1215, while the GBP jumped to 1.5675, supported by steady GDP growth and Industrial/Manufacturing production. The big news in Australia was the release of the Liberal Governments second budget. As…

Equities drove forward to start the week, buoyed by another attempt at monetary stimulus, this time from China. The Chinese cut interest rates, effecting a further stimulus, raising the bid in the global currency war. This allowed a recovery in equities after a non-pulsed employment report last Friday. European markets were considered and the EUR…

Markets were turned upside down overnight with the UK election results. The Tory party confounded all pundits and pollsters, who normally accurately call races, by winning an outright majority in the UK Parliament! Equities and the GBP surged, providing a good indication of fiscal management prospects, posing a question to market reaction to a left…

US equities rebounded, ahead of the important Non-Farm Payrolls, released tonight. Equities have been under some pressure recently, with some unsolicited observations that they were overvalued, by the Fed Chairperson! European equities were weaker after the release of weaker than expected Retail data from the Zone. The EUR held 1.1250, while the GBP moved to…

The annual bearish sell-off for May continues on the equity markets, encouraged by a commentary by Fed President Yellen, who observed that shares were overpriced. The ADP Private sector Jobs reported weakness in the employment market. Economic data has been weak globally and this was confirmed with Composite EU PMI data. Despite the data disappointment…

Sell in May.. go away! The old adage is living up to expectations. European equities spun out overnight and Bonds issued warning signals. Holders of Government debt pressed the panic button and offloaded lucrative investments. ECB QE has stimulated the ‘dead man walking’ single market but cannot solve the fundamental issues plaguing the Union. Economic…

Chinese Manufacturing PMI continued to contract, falling to 48.9%, confirming weaker demand for commodities. This has a direct impact on demand hitting the associated currencies. The NZD dallies around 0.7520, while the AUD slipped to 0.7830, assisted by a stronger reserve. Australian Job Ads improved and Building Permits expanded by 2.8%, some good news from…

Equity markets closed the week on a high after growing selling pressures curbed previous record highs. US Manufacturing PMI and ISM Manufacturing were flat, confirming recent insipid economic data and delaying pressure on Central banks to remove QE. Chinese data also remained static with little prospect of an improvement in commodity demand. University of Michigan…