US equity markets were joined trading at record highs by the Japanese Nikkei, satisfied that the Middle East war is all but over. Trump said as much, reassuring markets that the war was ‘close to over’. Markets did not need a second invitation and equities soared to record highs, while bond yields settled. Attention turned back to economic data, with EU inflation only marginally higher, while UK GDP growth was stronger than expected. There will be an impact, but this will be treated as a temporary blip, rather than a change in trend. The EUR settled above 1.1750, while the GBP held above 1.3500.
Australian employment numbers confirmed little change and despite the domestic energy crises, conditions look likely to return to normal. Chinese GDP growth surged to 5% annually, much better than expected and good news for commodity Countries. The AUD traded above 0.7150, while the NZD faultered, slipping back below 0.5900.
