Monday 3rd May 2021
What data there was on Friday was largely good news, apart from the horrific turn of events in India. In the US, though, reads on consumer sentiment and Chicago’s PMI came out stronger than expected. Yet markets turned a little sour at the end of the week, with equities sharply down, and commodity prices falling. NAB’s Tapas Strickland says month-end positioning will be partially to blame, along with concerns about market valuations. Another positive indicator for the US was a 21 percent surge in personal income in the US. Will this flow through to stellar GDP growth in Q2, and if so, what does this do t the prospects for Biden’s next stimulus package or for the Fed’s resistance to tapering?