The UK Prime Minister has resigned and NAB’s Gavin Friend says we will know her replacement next week. Meanwhile, markets are more concerned about rising inflation concerns.
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Shares are up, but NAB’s Ray Attrill describes it as another bear market rally. Meanwhile, as inflation continues to rise the question being asked again is, have we peaked yet? There’s scant evidence to suggest it has.
Yields pushing higher on both sides of the Atlantic – because of inflation in the US, unfunded debt in the UK. NAB’s Rodrigo Catril says the uncertainty is giving the Aussie dollar a trouncing, compounded by the slower path of hikes by the RBA.
The most surprising response to the higher-than-expected CXPI read was the sharp recovery in US stocks overnight. Bond markets, meanwhile, have priced up mire hikes for longer.
The BoE has been forced to step in again. NAB’s Ken Crompton says it’s no surprise they have been forced to buy index linked bonds because that is the main stock of pension funds. But how long will this uncertainty remain in the UK? And why the widening gap between business and consumer confidence in Australia. Who’s right?