PHIL’S AUDIO SHOWREEL
Equities bounced back in the US today, as attention switches beyond temporary inflation to the US getting back to work. All the signs we are seeing are that the US is reopening, say David de Garis.
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.
There are mixed views on the cause of the poor jobs recovery in the US. NAB’s Tapas Strickland says some see the stimulus as disincentive to look for work, whereas the markets have taken it as a sign that the Fed’s cautious approach is warranted.
A positive vibe says NAB’s Rodrigo Catril, tempered by inflation concerns and higher yields. Treasury yields are now back around pre-pandemic levels.