Wednesday 7th September 2022
There was a strong response to the US Services ISM overnight, which came in stronger than expected. NAB’s Rodrigo Catril says they have raised expectations for a 75 basis point rate hike at the next FOMC meeting, pushing bond yields higher overnight. In the UK Liz Truss is officially Prime Minister and is expected to freeze energy bills with what could amount to a £1,500 subsidy per household. So that could help reduce inflation, but higher government spending could have the opposite effect, particularly in combination with planned tax cuts. There’s also discussion about the RBA decision, Australia’s widening current account surplus, China’s trade data and the Bank of Canada meeting tonight. A busy one.