Tuesday 12th July 2022
There’s a more cautious tone in the markets today, with US equities falling, bond prices rising, and the US dollar continuing on the up and up. Sentiment hasn’t been helped today by more lockdowns in China as COVID cases flare up. Ironically, Yuan loans have increased a fair bit. NAB’s Tapas Strickland says this suggests, perhaps, that the economy will pick up once COVID cases have settled down. Meanwhile the Euro is very close to parity with the rising US dollar, as concerns grow about continuity of energy supplies. Already parts of Germany are starting to ration energy use.