Friday 4th September 2020
There have been massive falls in US equities, particularly tech stocks. NAB’s David de Garis says thin trading in summer can always create sharper moves, but there’s little doubt a correction was overdue and tech stocks have borne the brunt of it. There’s been no encouraging news to divert attention – the Services ISM number came in lower than expected, with the employment component still in contraction. The weekly jobless claims numbers remain persistently high, with non-farm payrolls providing more detail tonight. And the Fed’s Charles Evans has suggested it’ll take more than two years to see a full recovery. The biggest victim of this negative mood – other than retail investors feeling the equity hit – is the Australian dollar.