Has the slowdown begun in earnest?
Lower PMIs have given equity markets hope that central banks will move slower, but JBWere’s Sally Auld isn’t certain that will be the case for the BoE. And she expects today’s rise in the Aussie dollar is only a temporary reprieve.
NAB Morning Call · NAB - The Morning Call
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Show Notes
Thursday 24th August 2023
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Bond yields pushed lower on the back of weaker than expected PMI umbers, particularly in the UK and Europe. The drop was less pronounced in the US but yields still pushed lower on the back of the European slowdown. Equities rose sharply, presumably on the prospect of less in the way of hikes from central banks. But JBWere’s Sally Auld says that’s unlikely in the case of the Bank of England, given inflation and wage pressures are still strong. Does this mean they will have to force the country into recession? The Aussie dollar has benefited from the yield and currency moves today, but it doesn’t change the outlook. And shares will be buoyed further by a stronger than expected result from NVIDIA, beating analysts’ forecasts for Q3.
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