Author
Dave is a Director and Senior Economist with the NAB.
His bread and butter work is as a business, treasury or financial markets economist, speaking with clients ranging from the Bank’s agribusiness and corporate clients as well as to institutional clients at home and abroad.
He’s writes for the Bank’s daily and weekly economics and market reports, and speaks with the media, often on a day to day basis speaking about the economy and financial markets.
Dave did his economics apprenticeship with federal governments of various persuasions in Canberra, before he left Canberra in the late 1980s. He finished his indenture in Canberra as a senior economic adviser in the then Prime Minister Bob Hawke’s Department in Canberra, and before that in the Federal Treasury and the Bureau of Statistics.
A couple of comments from the Fed chair during the post-FOMC meeting Statement have been responsible for most of the market price action, notably, Powell’s remarks “we’re some ways away from substantial progress on jobs” and that “the Fed is nowhere near considering raising rates”.
If there’s one takeout from the Fed’s Beige Book overnight, aside from the continued improvement in the US recovery, it was the rising concern about input costs.
Equities bounced back in the US and Europe as markets re-evaluated the comments about the timing of tapering in this week’s FOMC minutes.
It’s been a mixed session for US equities overnight whilst bonds headed sideways.
USA equities came bouncing back after yesterday’s sharp response to the higher than anticipated CPI numbers.
There was quite a bit of optimism in the air on Friday as we career towards the end of the month and the end of the quarter this week.
Market sentiment has switched in the last 24 hours, with concerns that the economic recovery from COVID-19 might be slower than anticipated.
There wasn’t much movement in shares, bond yields or currencies overnight, despite weaker retail numbers out of the US.
Bond yields are on the rise, in the US and in Australia – for very similar reasons.
In normal times an episode like the Reddit induced short squeeze would eventually see markets return to normal.
US equities have bounced back after a day influenced by speculative trading on retail platforms with investors spurred on by chatter on Reddit.
Astra Zeneca announced the results of their trials, with efficacy up to 90 percent with a drug that is cheaper to produce and easier to distribute.
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