A sharp recovery on the US equity markets Friday, completed an extremely volatile trading week. This was a week dominated by speculation over the AI bubble and the prospect of an extended share market correction, due to a pop in the tech sector. This was cauterized by the Nvidia earnings and revenue beat, allowing markets blue sky trading. The AI speculation will continue, as many questions remain unanswered about the massive capitalisation and the inter-circular nature of the cross-company investment. The Fed minutes hinted at no rate cuts in December, but New York Fed Chair Williams, was a clear advocate for a rate cut. The US Dollar remained strong and steady, with the EUR trading around 1.1500, while the GBP looked to regain 1.3100.Commodity currencies remain under pressure, with the AUD trading 0.6450, while the NZD struggles to hold 0.5600. This coming week will be dominated by releases of GDP growth data across Europe and the long awaited and much anticipated, UK Budget.
