Markets are beginning to show signs of negativity, despite many equity markets trading just below record highs. The US Government shutdown rolls into the second week, while the French Government has resigned and remains in limbo, awaiting ‘Napolean’s’ latest rendition of his version of democracy. The EURO Dollar headed lower, while gold touched USD$4,000 overnight, with gains of more than 40% this year alone. Fiat currencies are under pressure, with the EUR also falling below 1.1700, while the GBP trades 1.3440.The new Japanese PM has been welcomed with record share markets, but bond yields have also risen to record highs, while the Yen is crashing. Commodity currencies are also weakening, with the AUD trading around 0.6580, while the NZD tests the downside of 0.5800. This is ahead of the latest RBNZ rate decision, who are expected to cut rates further, to stimulate the recessionary economy.
