Tuesday 19th April 2022
There’s a fundamental difference in the approach of the ECB and the Fed, as NAB’s Tapas Strickland explains on today’s podcast. Whereas the Fed is focused on inflation, the ECB is also concerning itself with growth. Could we see rising prices curtail that growth faster than anticipated? What about rising rates. The IMF has warned that rising rates will drive deleveraging that will have a marked impact on GDP growth. We also look at lockdowns in China and whether the rising bond yields in the US will offset any positive news to come from earnings results this week.
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Markets bounce back on piecemeal stimulus hopes
Market sentiment turned by hope of a piecemeal stimulus deal, but NAB’s Taps Strickland wonders whether the Democrats will play ball. Plus, are the Australian government’s growth forecasts too optimistic?
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Rates push ever higher as food prices soar
Although there’s volatility around, the common thread is still the rise in bond yields says NAB’s Ray Attrill. Inflation fears abound, not helped by a sharp rise in food prices last month.
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China to go shopping, UK to vote again?
Markets are riding high on hopes of a US China trade truce but, as BNAB’s Rodrigo Catril points out, sentiment can turn if the news isn’t as good as it sounds.
