Wednesday 14th September 2022
Markets were caught off guard by the higher-than-expected inflation rad fom the US. The fall in energy prices has been offset by a broad-based rise across all other sectors. US equities fell heavily, bond yields rose and the US dollar gained significant ground. NAB’s Ray Attrill says the results have raised the spectre of a possible 100bp rise by the Fed and a higher terminal rate. The UK gets their inflation numbers later, after falling unemployment numbers and rising wages yesterday. So what about Australia, where the NAB business Survey showed improvements in business conditions and sentiment – but, as we’ve been discussing lately, isn’t good news bad news?