6.11.23 There were some outsized moves in currency markets with the US dollar under pressure after the release of US payrolls data, notes BNZ Markets. The services ISM contributed to a further leg lower with the dollar index falling close to 1%. EUR/USD traded to highs just below 1.0750, 2 big figures above the weekly lows, says Stuart Ritson, senior fixed interest strategist.. The Canadian dollar, while gaining against the US dollar, was weak on the cross rates while the defensive pairings,...

1.11.23 It has been a mostly uneventful end to the month, despite the heavy event calendar, says BNZ Markets this morning. “The key market move has been a weaker JPY, even in the face of a further watering down of its yield curve control policy,” comments Jason Wong, senior markets strategist. “There was a change in direction in US Treasuries and the USD after the US employment cost index came in slightly stronger than expected, although month-end flows could well have been a contributing...

Risk appetite has begun the week on a positive note, with the market taking a sanguine view of developments in the Middle East says BNZ Markets this morning “Equity markets are higher, oil prices are down 3% and the USD is broadly weaker,” says Jason Wong, senior markets strategist. US Treasury yields have pushed higher, with nerves ahead of the Treasury’s refunding announcement and a Nikkei report that the BoJ will discuss a further tweak of its yield curve control policy. “Israel began its...

30.10.23 Global equities ended the week on a soft note with geopolitical risks and an underwhelming corporate earnings season undermining market sentiment, says BNZ Markets this morning. “The S&P closed 0.5% lower taking weekly losses to more than 2%. The market has now entered a ‘correction’ having declined more than 10% from the peak near 4600 in July. “Oil and gold prices increased with gold trading above $2,000 an ounce for the first time since May. US treasuries gained with the...

Investor risk sentiment remains fragile with global equities extending recent losses amid disappointing earnings from large US tech companies, notes BNZ Markets this morning The S&P is down more than 1%, falling further below the 4,200 level which formed the topside of the range through the first half of the year, says Stuart Ritson, senior interest rate strategist. Major equity benchmarks also declined in Europe and Asia. US treasury yields are lower, and the dollar index is little...

26.10.23 US equities traded lower with the S&P down close to 1.5% in afternoon trade as US treasury yields moved sharply higher, notes BNZ Markets this morning The move in treasuries contributed to a stronger US dollar. European stocks ended little changed while initial gains by Asian equities, after China announced new debt issuance and a higher budget deficit, faded, says Stuart Ritson. The Hang Seng China Enterprises Index was up more than 3% intraday before closing 1% higher. The...

There has been plenty of news to digest. The NZD and AUD are at opposite ends of the leaderboard for the day after a weaker than expected NZ CPI print and more hawkish than expected RBA meeting minutes, seeing narrower NZ-Australia rate spreads and NZD/AUD down nearly a cent, says Jason Wong, senior markets strategist at BNZ Markets. Much stronger than expected US retail sales drove higher Treasury yields, but the blip up in the USD was short-lived, speaking to long USD positioning. There was...

Newsflow has been light to start the week but the market has adopted a “risk-on” tone, noted BNZ Markets this morning. Of the key majors, the NZD and AUD have performed the best, following their underperformance last week, both up 0.7% from last week’s close. This sees the NZD at 0.5925 and the AUD at 0.6340, with the NZD/AUD cross flat at 0.9350. Jason Wong, senior market strategist says “The NZD opened the week with a kneejerk lift higher after Saturday’s election result – NZD/AUD getting...

10.10.23 Conflict between Israel and Hamas that escalated over the weekend gripped the market’s attention as the new week kicked off, notes BNZ Markets. Weaker risk appetite initially enveloped markets, with asset prices initially moving in their typical direction after such a major geopolitical event – global equities weaker, oil prices higher, and bond markets receiving a safe-haven bid alongside the USD, says Jason Wong, senior markets strategist at BNZ Markets. “But not all moves have been...

9.10.23     US nonfarm payrolls easily beat expectations at the end of last week resulting in significant moves across asset markets including a higher US dollar, notes BNZ Markets this morning In currency markets, the US Dollar jumped sharply following the upside surprise in payrolls but faded in line with the retracement in treasury yields, says Stuart Ritson. The dollar index traded 0.6% higher initially but ended the session around 0.2% lower than before the data. In the majors,...

US Treasury yields pulled back from 16-year highs reached in early European trade in a move supported by softer than expected US labour market data, says BNZ Markets this morning The retracement provided some respite for investor risk sentiment which was under pressure from the relentless move higher in real yields in recent days, notes Stuart Ritson, senior interest rate strategist. . US equities recovered off the lows and the US Dollar weakened. Oil fell to the lowest level since early...

It’s a daily case of wash, rinse, repeat, with higher rates, steeper curves, a stronger USD and weaker equity markets, with a strong US JOLTS report adding to the damage, says BNZ Markets this morning. US job openings unexpectedly rose sharply by 690k in August to 9.6m, breaking a run of declines (having fallen for six of the previous seven months), says Jason Wong, senior market strategist. “The rebound in job openings pointed to some lingering resilience in the US labour market, not...

Global markets were generally subdued into month-end, says BNZ Markets this morning. Early gains in US equities faded with the S&P ending little changed on the day, notes Stuart Ritson, senior interest rate strategist. The S&P fell more than 5% in September amid concerns about monetary policy remaining at restrictive levels for a longer period. Global bond yields fell on Friday, aided by signs of easing inflation in the Eurozone and the US, but ended the month with large losses. The US...

Another day, another bond market sell-off with fresh highs in global rates, although the net change in the US 10-year rate has been small, after some reversal, says BNZ Markets this morning. Higher risk appetite sees a recovery in US equities and a broadly weaker USD, notes senior markets strategist Jason Wong. The AUD has been the top performer, while the NZD has recovered to 0.5960. Higher UK rates led a global bond market sell-off, with the 10-year Gilt up as much as 20bps to 4.56% before...

The NZ dollar saw a modest gain on Friday night, closing the week at 0.5960, to be the best of the majors for the week, up 1%, notes BNZ Markets this morning. US Treasuries ended the week with a relief rally, the 10-year rate closing Friday down 6bps after trading at its highest level since 2007. The S&P500 fell for a fourth consecutive day.  Currency moves were modest, with a weak yen after the BoJ maintained a dovish stance. “On Friday, the BoJ remained as dovish as ever, maintaining its...

Ahead of a busy week, market movements have been modest, noyes BNZ M<arkets this morning. “The USD is slightly weaker, with a small fall overall, and the NZD has consolidated just over 0.59,” says Jason Wong, senior markets strategist. “US Treasury yields are well contained with a flattening bias and US equities show a small lift. Markets have opened the week with small changes ahead of policy meetings this week by the Fed, BoE and BoJ. There is a strong consensus that the Fed won’t hike...

US equities fell on Friday led by technology stocks following indications of weak demand from Taiwan’s TSMC, the world’s top chipmaker, notes BNZ Markets this morning. The Nasdaq fell 1.6% while the S&P pulled back 1.2% to end little changed over the week. “The beginning of a strike among US autoworkers also dampened investor sentiment,” says Stuart Ritson, senior interest rate strategist. Global bond yields increased, and the US Dollar made marginal gains. Brent crude remained near recent...

Ahead of a busy week, the USD weakened, about time following eight consecutive weekly increases in the DXY index, notes BNZ Markets. “A stronger yuan, given the heavy hand of the PBoC and some supportive credit data, has spilled over into a stronger NZD, AUD, with the stronger yen also playing a role,” says Jason Wong, senior markets strategist. “US Treasuries show small net movements and a slightly steeper curve while equity markets are on a stronger footing.” “Mondays are normally pretty...

In the absence of major economic releases, global markets were generally subdued into the weekly close, notes BNZ Markets The S&P closed marginally higher while Europe’s Stoxx 600 gained 0.2% boosted by energy stocks as oil prices continued to appreciate, says Stuart Ritson, senior interest rate strategist. US treasury yields moved higher supporting the US Dollar which rose for the eighth straight week, its longest run since 2005. The strong US Dollar continues to attract the attention...

US equities gained for the fourth consecutive day and treasury yields declined as soft GDP and labour market data added to signs the US economy is slowing decreasing the likelihood of further tightening by the US Federal Reserve, notes BNZ Markets. The S&P made modest gains and is back above 4500. The US Dollar is weaker against European currencies, said Stuart Ritson. Inflation slowed less than expected in Germany and rose to a 3-month high in Spain ahead of the Eurozone wide CPI release...

The market has cheered two much weaker than expected US economic releases, driving risk appetite higher.  US equities show strong gains, US Treasury yields have fallen, led by the short end, and the USD fell notably after some prior strength, notes BNZ Markets this morning. According to the US JOLTS report, job openings plunged to a more than two-year low and were over 620k weaker than expected at 8.8m, the miss exacerbated by downward revisions to prior data, says Jason W9ng, senior markets...

Global markets endured a choppy session on Friday as US Fed Chairman Jerome Powell addressed the economic symposium in Jackson Hole. “ He outlined that inflation is too high which will require rates remaining at the current level, or higher, to bring inflation down to its 2% target,” notes Stuart Ritson at BNZ Markets this morning. . The S&P gained 0.7% on the day resulting in the first higher weekly close in a month. Despite a short burst of volatility, the US Dollar was little changed...