Global equity markets continue to lose risk appetite, suffering a decline in AI investment, as worries over a bubble remain. US Non-Farm Payroll numbers were bleak. The Government shut-down prevented the release of the important data, but the statistics finally caught up. October numbers contracted by 105,000, while November jumped into the positives. The labour market appears very weak, which is another sign of deteriorating economic conditions, in the USA. The US Dollar was softer, with the GBP jumping back above 1.3400, while the EUR consolidates over 1.1750.
The creeping fears of recession in Europe and the US, have damaged commodity demand and the associated currencies. The NZD traded below 0.5800, while the AUD continues to drift, below 0.6650. Market attention now turns to inflation in Europe and the UK, ahead of key interest rate decisions, from the Bank of England and the ECB.
