Friday 30th July 2021

Markets have had a chance to absorb the dovish sentiment from the Fed yesterday and take stock of mixed data overnight. On the surface US GDP numbers looked weaker than anticipated, but a chunk of that was influenced by lower inventory and trade numbers. NAB’s Gavin Friend explains how consumption and investment was actually much higher than anticipated.  He says we can expect a strong GDP read for the Euro are later today, where vaccine levels are picking up. Markets have also been soothed from conciliatory messages from China regarding overseas investors. The Aussie dollar showed slower growth on the back of a weaker US dollar, as the question remains, how long will the Sydney lockdown really last?

The FOMC statement this morning had little market response, but NAB’s David de Garis says there has been a sharper reaction to words from Jerome Powell in the press conference that followed.

Tensions with China are seeing contagion from stocks to bonds to currencies. On today’s podcast NAB’s Ray Attrill says its fears of regulatory change that will quickly motivate investors to move money.

Major earnings results could help give equity markets more strength, but, on today’s podcast, NAB’s Rodrigo China’s regulatory uncertainty and slowing recovery rates are adding caution. All eyes will be on the Fed’s response later in the week.

The battle continues between virus numbers and corporate earnings. Tapas Strickland talks through the direction markets will take this week.

A continuation in the bond recovery as investor put aside COVID concerns, helped strong earnings results, says NAB’s Gavin Friend on today’s podcast.

Oil, equities, bond yields – all back up today. On today’s podcast NAB’s David de Garis says the focus is on reopenings and recovery.

Markets are mixed today, says NAB’s Ray Attrill in today’s podcast, with equities bouncing back on reflation expectations, whilst bond markets remain cautious over the speed of recovery.

Rising cases of the prevalent COVID 19 variant give markets a strong dose of the Delta Blues. NAB’s Taps Strickland says tensions with China aren’t helping either.

The Aussie dollar is under pressure because of global market uncertainty over COVID says NAB’s Rodrigo Catril on today’s podcast, with the Delta variant now the most common around the world.