Wednesday 24th November 2021
There was a surprise for those expecting the PMI numbers on Tuesday to confirm the widening gap between US and European economic performance. Let’s be honest, the NAB Morning Call team were amongst those who weren’t expecting to see the narrowing of the divide, with Europe doing somewhat better than expected, and the US a little worse than forecast. But NAB’s David de Garis says the US bond yields are still up, the market still wants to hold US dollars in anticipation of a quickening of the taper and earlier rate rises. The RBNZ rate decision today will be watched closely – there’s still an outside chance the rise will be as much as half a percent. And Joe Biden’s attempts to bring down the cost of oil seems to have gone awry. Confirmation of a plan to dig into reserves, not just in the US, has seen oil prices shoot skywards.