US equity markets resumed their slide, following the ban on ‘chip’ sales to China, hitting Chip Manufacturers (like market darling Nvidia) extremely hard. The NASDAQ plummeted, as tech heavy stocks took a beating. This follows gains in Asian markets, boosted by the strong economic data coming from China. China Q1 GDP beat expectations, coming in at an annualised 5.4% growth, while Industrial Production and Retail Sales both boomed. This is historical data and will be impacted by any long-term disruption of trade. US Retail Sales also surged to 4.6% annually, while inflation appears to be beaten. The US Dollar remained under pressure with Gold reaching all-time record highs. The EUR jumped back to 1.1370, while the GBP broke above 1.3200, but Gilts are nervous.The weaker reserve allowed the commodity currencies to consolidate, with the NZD trading up to 0.5900, while the AUD looks to regain 0.6350. The NZD will be under the spotlight locally, as inflation data is released, expected to show signs of reignition. Australian Employment data may also impact locally, although most of market attention, is focused on global trade.
