DAX: Germany dropped a bigger-than-expected 1.5 per cent on the month taking the annualised fall to 5.2 per cent, its biggest decline since Nov 2009. Chart/Levels from Analyst, Nicole Elliott – Investors Chronicle.


Kiwi cuts and comes again Surprise from RBNZ

Though the classic 25 basis point move had been expected by some, today the Reserve Bank of New Zealand lopped 50 basis points off its official cash rate taking it down to a new record low of 1.00 per cent. It was as recently as May this year that they trimmed 25 basis points to take it to the then record low of 1.5 per cent. A particularly terse statement noted: ’’The MPC agreed that a lower OCR is necessary to continue to meet its employment and inflation objectives’’. Sovereign bond yields and the currency both dropped swiftly on this news.

Reuters reports that this morning the head of China’s Hong Kong and Macau Affairs Office warned that HK was facing its worst crisis since handover in 1997. Zhang Xiaoming added, ‘’Hong Kong’s crisis…has continued for 60 days, and it is getting worse.’’ Protestors were warned not to underestimate central government strength and determination, and that those who break the law should be punished by the local police. State-backed The Global Times published a video showing thousands of mainland police officers in an anti-riot training drill in Shenzhen.

Nicole Elliott

Financial Markets and Political Commentary


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