Market mayhem continues, with equity markets tumbling, as energy prices spiral. Attacks on key energy infrastructure, in the Persian Gulf, are escalating and prices are skyrocketing. The impact globally will be surging inflation, rising interest rates and a possible global recession. This does little for commodity demand and we have seen a collapse in pricing. The dire state of the Middle East situation was confirmed by Central Banks, led by the Federal Reserve, which warned of inflationary pressures and rising rates. This was reiterated by the Bank of England, the ECB, Swiss National Bank and Swedens National Bank. The US Dollar lost some ground, with the EUR pushing 1.1550, while the GBP looks to regain 1.3400.Commodity currencies are suffering the volatility, with the NZD coming back towards 0.5840, while the AUD crashed back to 0.7050. Australian Unemployment was released yesterday, and the headline rate spiked to 4.3%, reflecting the growing problems in the stressed economy. All eyes remain on the Middle East and energy prices.
