Shares fall back off highs. NAB’s Tapas Strickland has a technical explanation in today’s podcast. Meanwhile Cable and the Euro doing well on the reopening story.
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.
Very positive economic data out of the US and yet investors have been buying into bonds. Not the response you’d expect. NAB’s Ray Attrill has several reasons driving the behaviour. So what will be the response to more positive numbers,, this time out of China (including Q1 GDP) later today?
The strength in the Aussie, weakening of the US dollar and a rise in bond yields are all part of the reflation trade, back in earnest, says NAB’s David de Garis on today’s Morning Call podcast.
There’s a bit of consolidation occurring in the markets right now, says NAB’s Tapas Strickland, with a dearth of top tier data. Jerome Powell reiterated that sustained inflation is still a long way off, but the ANZ Business Survey for New Zealand perhaps tells a different story over there.
Very quiet markets overnight. NAB’s Gavin Friend considers that there might be a little rebalancing, with the realisation that, although Europe might be slower than the US to recover it will only be a matter of months. The destination will be the same.
Economies are recovering, particularly in the US, evidenced by the latest IMF forecasts. Yet markets are cautious today. NAB’s David de Garis wonders whether markets are listening to Jerome Powell when he reiterates that it’s a long road ahead.
Markets have reassessed the risk of inflation. On today’s podcast NAB’s Rodrigo Catril says the fear for equity markets is a Fed that might raise interest rates aggressively if it is behind the curve. https://t.co/WgAPDfpAzS