Markets are optimistic given strong earnings and positive economic indicators, but NAB’s David de Garis so supply chain issues will push prices up temporarily. But how long is temporary?
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.
Inflation concerns are on the rise again says NAB’s Rodrigo Catril, as US Treasury yields step up again. Meanwhile, stellar earning results, like Alphabet, Microsoft and Tesla this week, don’t always result in higher share prices – has the market reached a peak for now?
PMI numbers on Friday showed a sharp rise in services says NAB’s Tapas Strickland. All eyes are on the speed of the rebound in Europe now, whilst equities race higher in the US. With all this good news will there be even a hint of a change in future direction from the Fed this week.
Reports of a capital gains hike has weighed on US equities, but NAB’s Gavin Friend says its been an opportunity for investors to consider the valuations of shares, particularly if the pace of recovery slows. Also, the ECB, not ready to talk tapering just yet.
NAB’s David de Garis says the market was expecting the Bank of Canada to announce tapering of bond purchases, but the 2.5% increase in their growth forecast was a big surprise. Plus a look ahead to the ECB on today’s podcast.
Wednesday 21st April 2021
There’s a cautious mood in the markets right now, with US stocks down, with smaller caps hit particularly hard. NAB’s Ray Attrill discusses whether this is all down to a revaluation of the speed of the economic recovery. Could the tightening of credit be responsible for this? It’s hard for businesses to recover without borrowing. There’s also discussion of yesterday’s RBA minutes and the expectations for Australia’s retail numbers out this morning.
Equities bounced back in the US today, as attention switches beyond temporary inflation to the US getting back to work. All the signs we are seeing are that the US is reopening, say David de Garis. https://t.co/PGhGeZ6DH2
US CPI numbers came in much higher than expected, with a swift market reaction. NAB’s David de Garis says the bond market reaction has been mature, but you could argue that the equity market has overreacted. Listen to why: https://t.co/UbdAjb9zja