Markets staged a recovery from Monday’s weak opening to the week. Two US vessels, accompanied by warships, passed through the Iranian blockade of the Strait of Hormuz. This was under the new ‘Project Freedom’, alleviating pressure, and allowing oil to drop back down towards US$100/b. Equities bounced and bond yields peaked after surging to new highs. UK 10-year Gilts remain a concern, trading above the psychological 5% mark, hinting at serious economic issues. The EUR looked to recover some lost ground, heading back towards 1.1700, while the GBP broke back above 1.3500.
The RBA raised rates, for the third straight time, recognising inflation has never been contained and has only accelerated under the current energy crises. The last CPI reading, had Australian inflation running at 4.6% annualised, way above target levels. The AUD trades just below 0.7200, while the NZD struggles to regain 0.5900.
