NZD

• Negative vibes. Ongoing concerns about the Middle East conflict weighed on sentiment. Equities lower, oil & yields higher. USD firmer. AUD under pressure.• Twists & turns. Situation in Middle East remains uncertain. More volatility likely. Impact on world economy from energy supply shock still in its infancy. Global Trends Middle East related concerns weighed on risk sentiment once again with markets questioning the chance of a diplomatic solution to end the conflict. According to various reports, the US has proposed a 15-point peace plan and is aiming for a quick resolution, while Iran responded with its own 5-point. The...

• Risk reversal. Comments by Pres. Trump saw oil prices fall & sentiment improve. USD weaker. AUD ticked up, but AUD also underperforms on crosses.• Fragile markets. Situation in Middle East remains fluid. More volatility likely. Impact on global economy from the energy supply shock still in the pipeline. Global Trends Markets continue to be whipped around by developments in the Middle East, although the mood and moves were more positive overnight on the back of a shift in thinking that the conflict could be nearing an end. Yesterday’s bout of risk aversion reversed course when, just before US markets...

• Market nerves. Concerns about the duration of the Middle East conflict & global economy remain. Equities fell on Friday, bond yields rose. AUD underperforms.• Risk radar. Situation in Middle East remains in the driver’s seat. More volatility likely. Macro headwinds for AUD & NZD still in place. Global Trends Developments in the Middle East and energy markets remain in the driver’s seat. Heightened concerns about the state of play and outlook weighed on sentiment at the end of last week. The news flow hasn’t really improved over the past few days with both sides hurling threats at each other...

• Negative vibes. Another jump in energy prices & upward repricing in interest rates dampened risk sentiment. USD firmer. AUD & NZD underperform.• Macro news. Asia exposed to higher energy costs. Growth in Australia set to slow. US Fed looks to be in no hurry to cut again. AU jobs report out today. Global Trends The positive sentiment that ran through markets over recent days gave way overnight, with the harsh reality of the situation in the Middle East and a few macro factors dampening the mood once again. European and US equities declined with the S&P500 shedding ~1.4%, while...

• Market nerves. Higher oil prices & Middle East developments dampened risk sentiment on Friday. USD firmer. NZD & AUD underperform.• Macro events. Central banks in the spotlight this week. High chance of a RBA rate hike. But its not guaranteed. AUD volatility around the RBA likely. Global Trends Risk sentiment remained negative at the end of last week with the situation in the Middle East and jump in oil prices continuing to unnerve investors. The conflict is entering its third week and shows limited signs of letting up. The US continues to bolster its military presence in the region,...