Holiday update – Tuesday 17th August 2021

Mark NugentAugust 2021, Daily Alert

Holiday update – Tuesday 17th August 2021

I am safely ensconced in an Airbnb in Lewis and the sun is shining. Really.

The week kicked off well in Japan with Q2 GDP beating expectations. The mood was tempered with a miss on Retail Sales in China.
The S&P 500 and DJIA delivered a 5th consecutive new all-time high on the daily chart, with the former now sitting at twice the level seen at the pandemic low in Early 2020. The unfolding Afghanistan shambles is dominating the news but is likely to have no impact on the markets I look at.

In the UK, the Unemployment Rate is as per expectation and the Claimant Count Change is encouragingly low.
New Zealand continues to follow a crazy zero-Covid strategy and will suffer a nationwide lockdown for three days and Auckland lockdown for seven days.
Japan’s government confirmed it is to seek an extension of the coronavirus emergency in Tokyo through to September 12th and will extend it to seven additional prefectures, while the expert advisers panel approve government plans to extend and widen the state of emergency.
OPEC currently sees no need to release further supply into the market despite recent calls by Washington for increased output to avert a slowdown in the economy from higher prices.
Equities, oil and GOLD are turning down at the time of writing (8am BST). On currencies, the most notable dynamic is the rising JPY and the falling commodity currencies.

Notable risk events are Eurozone GDP and US Retail Sales, followed by Fed Chair Powell. Early Wednesday morning sees the RBNZ Rate and Statement at 2am and UK CPI at 6am.

I will glance at the charts from time-to-time. I am very interested in the JPY/commodity currency related movements and the Japan225 and WTI, both of which have moved down nicely to support.

I’ll be back tomorrow.