China reported disappointing import numbers at the close on Friday. It’s significant, says NAB’s Ray Attrill, because it shows that, as demand for Chinese goods falls, the demand for overseas sourced inputs to those products falls. That’s not a healthy outlook for the Australian economy, although we didn’t see any market reaction. Indeed, the Aussie dollar climbed over 70 US cents at end of the week, as the US dollar falls and equities rise on speculation over how deep the Fed will cut at the end of the month. I ask whether a downturn in corporate earnings this week will dampen equity prices, or is the speculation on interest rates too intense to be side-tracked by anything else.
-
Fed still pushing, BoE pushes back, EU struggling for answers
NAB’s Rodrigo Catril says it makes no sense for shares to be rising last week when we can expect more bad economic news to come, so expect more volatility.
-
Fed warns of considerable medium-term risk, hints for more fiscal support
The US Fed warns of considerable medium term risk but markets see optimism. NAB’s David de Garis looks at the FOMC meeting, with the ECB up next.
-
Equities hit by China’s clashes with Trump and Hong Kong
Market sentiment was tempered by increasing US China tension. NAB’s David de Garis says US politics has a part to play, plus China’s moves to impose new legislation on Hong Kong.
