FOREIGN EXCHANGE

Strong earnings continue to outweigh Delta concerns with the S&P500 reaching a new record high, So far 87% of companies reporting have beaten expectations and if maintained would be the strongest earnings beat since 2008.

Monday’s delta blues are once again talking back-seat in driving markets, the winning streak in the major US stock indices extending to a third day as incoming quarterly earnings reports for the most part continue to beat expectations, the S&P500 closing within 0.4% of last Mondays record high.

Strong earnings have swept away Delta concerns in the US with 85% of companies reporting so far beating expectations.

The Delta variant continues to spread, vaccination rates have slowed, and case numbers are rising.

There’s more caution in the markets today, even though numbers out of Australia, the US and China were better than expected. There’s a bit of battle fatigue hitting the market says NAB’s David de Garis.

There are now less than two unemployed people for every job vacancy in Australia, a record low for this ratio.

Following a positive lead from Asia, US and EU equities have kick started the new week with a positive tone.

A swift turnaround in market sentiment on Friday. NAB’s Ray Attrill provides some of the reasons.

The ECB’S new strategy has driven the Euro higher in a market which has generally been driven down by COVID concerns. NAB’s David de Garis explains what’s changed in the ECB’s 2% inflation target.