Yesterday was one of the days that investors would have liked to stay in bed, says Nico Kelder, economist at the Efficient Group.
Local equities traded lower (-3%) on the back of weaker international markets. The currency weakened further against al the majors especially the pound. Dollar strength is still present - gaining against the euro and yen.
Bonds are continuing to indicate that interest rates are set to raise – a result of increasing inflation fears. Commodities closed to the downside as the dollar strengthened.
The oil price showed larger declines as Saudi Arabia indicated that OPEC might consider increasing production at its next meeting.
European markets shed between 2 and 3%, US markets were slightly more resilient losing “only” 1%.
Markets in the Far East seems to have done all their declining yesterday and is trading flat so far this morning. We expect local equities to continue losses but not on the same scale as yesterday.
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