Monday 18th October 2021
Equity markets were buoyed by strong US earnings results and stronger than expected retail sales numbers, but there are many reasons to suggest this confidence might be short-lived, according to NAB’s Tapas Strickland. Corporate earnings have been focused on the finance sector, so results from other sectors will give an indication of the inflation impacts on margins and growth potential. Chinese activity data today and the ongoing Evergrande saga could impact global growth hopes. Then there’s inflation, which continues to grow, with the Fed expected to bring forward its first rate hike and the Bank of England Governor reiterating the need for a rate rise in the UK this year. Paying more for a mortgage is unlikely to boost consumer confidence which is already flagging.