Market Overview
Key Points:
• Market uncertainty sees heavy risk off tone
• NZ Building Permits for March 5.8% vs 12.2% in February
• Analysts have predicted that US inflation peaked in March and will go considerably lower heading towards the end of 2022
• Nasdaq, DOW and the S&P start May trading positive
• Sanctions on Russia won’t be lifted unless a peace agreement is put into place, opening the question up- how long will this war go on?
• Russia is planning a takeover of Moldova with a number of signals suggesting they will attack in the near term
• China struggles to deal with new covid cases in Shanghai with 7333 new covid cases
• The US Dollar is the strongest currency this week with the New Zealand Dollar and the British Pound the weakest
• Eurozone Manufacturing PMI prints at 55.5 vs 55.3, a slightly better revision
Major Announcements last week:
- German Business Climate 91.8 vs 88.3
- US Core Durable Goods 1.1% in March from Feb’s 0.5%
- Australian CPI q/q 2.1%, 5.1% y/y up from 3.5%
- US advanced GDP -1.4% q/q vs 1.1% forecast
- US Consumer Sentiment 65.2 vs 65.8 forecast for May up from April’s 59.4 read