US GDP moves higher
The US GDP report released overnight could be described as anti-Goldilocks, with both weaker growth and higher inflation than expected, says BNZ Markets this morning. The rates market was more focused on the latter than the former, seeing a further paring of US rate cut expectations, sending yields higher, comments Jason Wong, senior markets strategist. “A stronger USD reaction wasn’t sustained and the NZD is little changed at 0.5945 from where we left it ahead of the ANZAC day holiday. “The...
Contrasting economic activity reports
Contrasting business activity readings in the UK and US set part of the backdrop for trading on markets overnights. Investor risk appetite has continued to recover underpinning global equities. The S&P gained more than 1% as the market looks ahead to corporate results from large technology companies. The FTSE 100 traded to a new all-time high before retracing amid a broad-based rally across European stocks. BNZ Markets senior interest rate strategist Stuart Ritson noted that US treasury...
KIwi dollar flat and steady
Risk appetite is higher as Middle East tensions settle. US equities have rebounded after a weak run, the UK FTSE100 closed at a fresh closing high and commodity currencies have outperformed, notes BNZ Markets this morning. “The NZD has consolidated above the 0.59 mark and is flat to higher on the key major cross rates,” says Jason Wong, senior markets strategist. “There have only been small changes in US Treasury yields. It has been a typically quiet start to the week. After a streak of three...
Kiwi dollar at fresh 2024 low
Global equity markets traded lower on Friday, but pared the worst of the losses that came amid a sharp rise in investor risk aversion following news that Israel had launched retaliatory strikes against Iran, says BNZ Markets this morning. “Risk sentiment recovered after Iran’s state media played down the damage from the attacks raising hopes that the hostilities wouldn’t escalate into a broader conflict,” notes Stuart Ritson, senior fixed interest strategist. US treasuries ended little...
Strong US dollar caps Kiwi
Newsflow has remained light, generating modest movements in asset prices, says BNZ Markets this morning. “US equities are down modestly while US Treasury yields have pushed higher, with a stronger Philly Fed survey and hawkish Fed-speak not helping.,” notes Jason Wong, senior markets strategist. The USD is broadly stronger, reversing the previously day’s loss, with the NZD nudging down to 0.59. “It's looking like a quiet end to the week with not much newsflow to drive markets. US Treasury...
High CPI nudges Kiwi dollar up
There is a modest risk-off tone in the air, with US equities weaker, US Treasury yields lower, credit spreads wider and oil prices weaker, notes BNZ Marjets this morning. “Currency movements haven’t been affected by the risk-off move, with the USD broadly weaker overnight,” says Jason Wong, senior markets strategist. “The NZD and AUD have been the best performers over the past 24 hours, with higher rates post the NZ CPI supporting a move for the NZD above 0.59, which has been sustained...
US rates high for longer
17.4.24 Global bond markets remained under pressure overnight, notes BNZ Markets this morning. “US treasuries yields made fresh highs for the year which constrained equity market performance,” says Stuart Ritson, senior interest rate strategist. The S&P was marginally lower in early afternoon trade, with limited rebound from recent weakness, despite trading at one-month lows. The VIX gauge of US stock market volatility remained elevated reflecting the uncertain geopolitical backdrop. In...
Cautious tone on financial markets
Markets continue to trade with a cautious tone, with Israel vowing to retaliate against Iran’s weekend attack, notes BNZ Markets this morning. US equities are down close to 1% and oil prices are barely lower, with Brent crude about US$90. US Treasury yields rose to fresh 2024 highs, with much stronger than expected US retail sales being a factor. “The USD has been well supported, with the yen, NZD and AUD notable underperformers, weakening to fresh lows,” says Jason Wong, senior markets...
Risk aversion on financial markets
Risk aversion gripped global assets markets into the end of last week amid rising geopolitical tensions, says BNZ Markets this morning. There were growing concerns that Iran could launch a retaliatory attack on Israel following the air strike on the Iranian consulate in Syria “Over the weekend, Iran’s military seized an Israeli-linked container ship, and launched drones and missiles towards Israel, in a significant escalation of hostilities. These developments will weigh on investor rise...
NZD and AUD outperform
Markets have settled after the shock from the hot CPI print in the US the previous night, helped in part by a more benign PPI print, notes BNZ Markets this morning. US Treasury yields show only small movements, with a modestly steeper curve led by a retracement in the 2-year rate, says Jason Wong, senior markets strategist. The 10-year Treasury found support with yields just under 4.6% overnight. US equities have bounced back. The ECB’s in-line policy update had little impact on the market,...
