Thursday 8th September 2022
There were big market moves yesterday and overnight, with sharp drops in oil prices, bond yields falling, a turnaround in US equities and the US dollar losing some ground. Even so, the Yen has fallen further, to its lowest level in 24 years. NAB’s Skye Masters says there wasn’t much data to influence the markets, but there was a lot of Fed commentary that is suggesting that perhaps the pace of interest rate moves might begin to slow down. Falling oil prices and government subsidies on gas prices in Europe and the UK will also be seen as helping to tame inflation.
-
The inflation shock we were warned about
US CPI numbers came in much higher than expected, with a swift market reaction. NAB’s David de Garis says the bond market reaction has been mature, but you could argue that the equity market has overreacted. Listen to his explanation of today’s Morning Call podcast.
-
Lowe on QE, US equities up, pound lower, US inflation tonight
NAB’s Rodrigo Catril on Lowe’s comments on QE on today’s Morning Call podcast. Plus, how US equities and bonds show different ideas about trade talk progress.
-
Slow boat from China
The Aussie dollar has fallen sharply on weak Chinese data. Oil has also fallen markedly, with NAB’s Ray Attrill says that’s a combination of the China data and hopes of an Iran nuclear deal that would add more oil to global supplies.
