Oil prices eased overnight, allowing for equity markets to book some gains, with the tech heavy NASDAQ hitting all-time record highs. Despite the sliver of good news, bond yields crept even higher, trading at dangerously high levels, flashing warning signals. European bond yields are of particular interest, as combined with record debt and surging inflation, spell big trouble for European economies. French Cities are under pressure, from rioting sections of their citizens, and the heat is on. European PPI numbers surged, jumping to 8.2%, confirming the dire situation. The EUR tumbled below 1.1200, levels not seen since the COVID crisis, while the GBP flirted with the downside of 1.3200.The surging reserve hit the NZD, which slumped back below 0.5600, while the AUD spiked against the trend, to 0.6950. The AUD was undoubtedly assisted by an inflation report, showing the underlying trend was lower, while Services PMI data was steady. The AUD overperformed, but vulnerabilities remain, as the global energy crisis rolls on.
