Thursday 14th April 2022
Despite 50 basis point hikes by the Bank of Canada and the RBNZ over the last 24 hours, bond yields haven’t moved a great deal. NAB’s Gavin Friend says the market has taken a bit of a breather, which has offered a reprieve for stocks, with the NASDAQ climbing 2 percent at close. The path is certain for Canada and New Zealand, but it’s a less clear direction for the ECB, which meets tonight, with no moves expected as Europe struggles with rising energy prices and the impact of Russian sanctions. Similarly, the UK has just reported the highest CPI read in 30 years and it will only get worse, but the cost-of-living squeeze is making it hard for the Bank of England to look at big moves in a hurry. Today’s employment numbers for Australia will be keenly watched by the RBA, who will be looking at prospects for wage rises driven by an even tighter labour market.