Waiting on Evergrande, the Fed and oil inventories
Markets await the latest chapter in the Evergrande story, but NAB’s David de Garis says China’s controlled economy means it won’t be another Lehman Brothers moment.
The Morning Call
Start your day with the Morning Call for the latest overnight key economic and market information straight from NAB’s team of expert market economists and strategists.
Evergrande Contagion Fears
A torrid day, says NAB’s Ray Attrill, as markets run for cover over fears over Contagion’s default. Her talks through the reactions and implications for the Australian market.
Just another cautious Monday
Markets are treading water ahead of the FOMC says NAB’s Tapas Strickland. The fate of Evergrande in China is also playing on sentiment.
Lots of movement, not much direction
US equities fell and the dollar strengthened despite strong retail sales from the US. NAB’s Gavin Friend says the markets weren’t quite sure how to take it or why the numbers were so strong.
High hopes or buying the dip?
Buying the dip? There wasn’t any strong news to explain the rise in US equities. NAB’s Tapas Strickland says that, and softer news from Asia, suggests that is the case this morning.
Has US inflation peaked?
Lower inflation in the US gives the Fed more time, but NAB’s Rodrigo Catril says some of the market moves overnight are based on growing COVID outbreaks in China.
Oil Higher and RBA’s Lowe-down
Transitory impacts from supply chain disruption could last longer, which means the Fed can wait out higher (supply-driven) inflation for longer, says NAB’s Tapas Strickland ahead of tonight’s US CPI numbers. Also, oil higher, and what will Philip Lowe say at lunchtime today.
Three reasons to be cautious
Complicated questions over China add to global inflation and growth concerns. There are so many influencing factors that data reads are very noisy right now says NAB’s Rodrigo Catril.
ECB, calibrating not tapering
As expected, the ECB cuts it pace of bond buying. NAB’s Gavin Friend says this is correcting an ECB that has been too gloomy on growth and inflation.
Bank of Canada on pause, ECB unlikely to do the same
Markets have been waxing and waning on the impact of the Delta variant, says NAB’S Gavin Friend, so no surprise equities are struggling a little. Also, no surprise that the Bank of Canada didn’t cut bond buying, but its expected the ECB will do just that later on.
