Indices rebounding: But be careful – NZD interest rates in focus [Video]
|After several days of severe market selloff, we see some risk-on sentiment.
But, will it last?
Last time, we looked at the different US Indices and how they were affected by the selloff caused by US tariffs.
Here is a spreadsheet looking at the percentage impact of the crash and how US small-cap companies were hit harder than the huge companies in the large-cap indices like the DJIA.
We see the opening of the markets in Europe and there was a rebound there but investors are selling off again, based on threats of retaliatory tariffs between the US and China.
With all the turmoil, the economic calendar may have little effect as all the world’s central banks will be confused.
But, we have an Interest Rate Decision, Wednesday, in New Zealand where we expect a 25 basis point drop.
If that doesn’t happen, we may have some volatility to trade.
Every chart with NZD pairs shows similar volatile price action, so look for sudden moves against the trends.
We also have speeches from major central banks which, under the current circumstances, should move the markets.
We have New Zealand, Japan and the US tomorrow, and Australia Thursday.
Thursday and Friday, we have more US new,s but there is no guarantee that these will move the markets.
We are seeing volatility in the crude oil markets as both WTI and Brent Crude fell to lows not seen for over 4 years.
Any positive news regarding tariffs should have the crude oil markets rebounding.
That’s all for now.
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