Monday 12th September 2022
Curiously, US shares pushed higher towards the end of last week, even though there is no sign of the central bank slowing down its path of rate rises. Quite the reverse in fact. NAB’s Rodrigo Catril says short-selling has been a driving force behind this and we can expect volatility in equity markets for some time. Meanwhile, front end bond yields are rising as Fed speakers find new ways to signal continued tightening, with no let-up until the job is done. We might hear the same from the Bank of England, except they’ve pushed back their next meeting to next week in respect to the death of Queen Elizabeth II, but it could work out as much better timing for them as well. The EU are struggling to find an answer to energy prices, but have agreed that something needs to be done, hopefully before the cold weather sets in.