Markets found some relief overnight, with US equities shrugging off all the negatives and rallying strongly. Oil prices had earlier shocked markets, surging above US$110/barrel, only to retreat back to US$104/barrel, later in the trading day. US bond yields are off recent worrying highs, while European bonds, remain under the spotlight. German PPI spiked higher than expected, jumping to an annualised 6.7%, confirming inflationary problems. French bond yields look certain to break the dangerous 5% level (10-year), amidst the political, social and financial chaos. The US Dollar was softer, with the EUR gaining above 1.1200, while the GBP pushed up to 1.3375.The weaker reserve allowed commodity currencies to post rare gains, with the AUD looking to regain 0.7000, while the NZD fast approaches 0.5700. Volatility will continue and markets will suffer inflation and interest rate rises, until a solution to the energy crisis is found.
