Chris Becker

Share markets in Asia are again failing to follow the ebullient mood on Wall Street with the latest industrial production numbers in China disappointing while Japanese core inflation numbers are still relatively high, giving the Nikkei a boost above the 40000 point level.

There’s no greater example of the disconnect of stock markets with economic reality with Wall Street surging overnight to almost historic highs on the back of a worsening Q1 GDP print and signs that Q2 will show the number 1 economy is in a full recession.

Equity markets outside of Japan in Asia are dragging their feet despite a weaker USD with the Trump regime putting more pressure on Fed Chair Powell not helping.

Wall Street struggled to find a reason to continue the post “Mission Accomplised” Iranian strike rally with European shares slumping despite a commitment of more military spending at NATO.

Equity markets in Asia are somewhat bullish although the latest softish CPI print kept Australian stocks and the dollar steady, despite further calls of cuts from the RBA.

Risk markets continue to discount all negative news, like the non-existent ceasefire between Iran and Israel, and latched on to Federal Reserve Chair Powells dovish testimony in front of Congress overnight.

Risk markets are buying the rumour, selling the fact with stocks and undollars soaring higher while oil and the USD is slammed lower on the possibility of a “ceasefire” in the Middle East.

Everything is awesome as a potential ceasefire in the Middle East is underway, following an Iranian attack on a US military base in Qatar was thwarted.

As the bombs, missiles and threats are thrown around the Middle East like kids in a playground, risk markets are relatively stable following the entry of the US into the Israel-Iran war.