NAB Morning Call

Wednesday 24th April 2024NAB Markets Research Disclaimer Financial Services Guide | Information on our services - NABPMIs showed some strength in Europe, but were generally weaker than expected in the US. NAB’s Taylor Nugent says it’s the US numbers that generated a market reaction because it adds to the leading indicators that challenge the notion of US exceptionalism and that the gap between the US and Europe is closing. Today the quarterly CPI print for Australia is unlikely to move the dial on RBA cuts, even if it comes in slightly lower than expected. Plus, Tesla’s earnings results, which have seen a rise in after hours pricing.

Tuesday 23rd April 2024NAB Markets Research Disclaimer Financial Services Guide | Information on our services - NABThe force of AI is strong it seems. It’s certainly pushing equities back up again in the US ahead of earnings results for several of the Magnificent Seven later this week. Meanwhile, bond markets and currencies have calmed down, although the pound is weaker on expectations for an earlier cut by the Bank of England. Today PMIs for the UK, US and Europe will give a clearer indication of the relative strength of each economy and, perhaps, justify the different schedules being pursued by the various central banks. JBWere's Sally Auld talks through it all on today’s podcast.

Monday 22nd April 2024NAB Markets Research Disclaimer Financial Services Guide | Information on our services - NABThe magnificent seven have been taking a hit in the US share market. NAB’s Ray Attrill says the forward-guidance for Netflix wasn’t received well, and four more of th large tech stocks report this week. Meanwhile, there were further signals of delays in Fed rate cuts, whilst the impetus in Canada, Europe and the UK seems to be, if anything, moving the other way. But, assuming no further escalation in the Middle East, it seems likely that US equities might be the focus in the early part of this week.

Friday 19th April 2024Please note this communication is not a research report and has not been prepared by NAB Research analysts. Read the full disclaimer here.This week we saw the divide between European despondency and American exceptionalism widen a little further. The IMF upgraded their US growth forecasts, whilst nudging Europe’s a little lower. But it’s not all doom and gloom. Melanie de Bono, senior Europe economist at Pantheon Macroeconomics in London, says the economy is already benefiting from real wages growth which should accelerate domestic demand, whilst a June cut by the ECB seems likely, with Pantheon predicting four cuts in total this year. That’ll free up even more household spending whilst boosting the investment opportunities for business. But is there the confidence in the economy to support that shift in demand and production? And what of a likely trade dispute with China and the potential of increased geopolitical volatility in the Middle East? Could they impact inflation and hinder Europe’s relatively lacklustre growth opportunity?

Friday 19th April 2024NAB Markets Research Disclaimer Financial Services Guide | Information on our services - NABFed speakers are increasingly pushing expectations for cuts further back in the year. John Williams even suggested he’d entertain the idea of a rate rise if it was warranted. That’s coming from one of the more dovish members of the FOMC says NAB’s Ken Crompton. Ken also takes us through yesterday’s employment numbers for Australia and looks ahead to Japan’s CPI and UK retail numbers today. And we give you the latest Netflix earnings – a knockout for new subscribers. Plus a taste of what’s to come on the Weekend Edition.

Thursday 18th April 2024NAB Markets Research Disclaimer Financial Services Guide | Information on our services - NABMarkets were mixed overnight. The dollar lost a bit of ground, AUD and NZD outperformed, bond yields fell, while US equities have continued to struggle. The only geopolitics to speak of came from Joe Biden talking upping  the need to impose hefty tariffs on Chinese steel and aluminium imports. NAB’s Rodrigo Catril says it as a bit of electioneering and pacifying the US steel industry. Today Australia’s employment numbers will be the focus. The unemployment rate rose considerably in February but as Rodrigo points out, these numbers can be very volatile.

Wednesday 17th April 2024NAB Markets Research Disclaimer Financial Services Guide | Information on our services - NABThere’s been a significant shift in sentiment from central bankers at the IMF meeting in Washington. Jerome Powell, who had previously seemed happy to accept rate cuts relatively soon, is now signalling it will take longer. IMF forecasts that significantly upgraded US growth for this year might have added to the pressure to cool things a little. Meanwhile, Andrew Bailey from the Bank of England, who it was assumed was prepared to wait till after the Fed, is now talking about inflation coming down, suggesting a cut sooner might be possible. Perhaps a sharp rise in unemployment influenced his thinking. NAB’s Rodrigo Catril joins Phil to talk through the latest data and words from the mouths of central bank speakers.

Tuesday 16th April 2024NAB Markets Research Disclaimer Financial Services Guide | Information on our services - NABThe latest retail numbers showed the resilience in the US economy. NAB’s Ray Attrill says its surprising given the fall in household savings, but there are more people in work feeding the spending habit. These stronger than expected numbers haven’t changed expectations for the timing of rate cuts by much, but bond yields have pushed higher and lifted the US dollar a little further too. A weaker Yen and Aussie dollar have been two of the consequences. Today employment data for the UK, CPI for Canada and GDP for China. Plus the latest forecasts from the IMF.

Monday 15th April 2024NAB Markets Research Disclaimer Financial Services Guide | Information on our services - NABHow markets respond to the Middle East situation this week really depends on whether Israel retaliates. The expectation of the weekend’s drone attack on Israel by Iran pushed the US dollar higher, bond yields lower and caused some damage to equities. NAB’s Taylor Nugent says there hasn’t been much response in early trade today, but Bloomberg Economics is predicting a sizeable spike in oil prices if this broadens to a regional war, with the subsequent impact on global GDP and inflation. There’s also discussion on China’s trade numbers from Friday, the weakening Michigan Consumer Sentiment survey and what to look out for today, besides the latest geopolitics.