NAB – The Morning Call · Kabul blasts hit sentiment, markets hold for Powell’s taper talk
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Kabul blasts hit sentiment, markets hold for Powell’s taper talk

Friday 27th August 2021

Market sentiment has been hit by the explosions in Kabul this morning, but NAB’s David de Garis says the response has been fairly limited. It certainly hasn’t knocked currencies and equities out of their trading ranges. No, the real focus today will be on what Jerome Powell says at tonight’s virtual Jackson Hole Symposium. Even though more hawkish members of the Fed are pushing for tapering sooner rather than later, it’s still likely that Powell will retain a wait and see approach. There’s still too much uncertainty to assume jobs will keep bouncing back at the rate we saw in the last non-farm payrolls. The next report ins only a week away. Whilst the NSW Premier talks about easing restrictions, the national cabinet meets today to nut out a COVID strategy. Experience overseas suggests opening up when infections are rising can lead to a very slow recovery, blighted by supply chains issues and labour shortages.

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