NAB Morning Call

Thursday 2nd May 2024NAB Markets Research Disclaimer Financial Services Guide | Information on our services - NABThe Fed kept rates on hold for the sixth meeting in a row this morning, warning that there had ben a lack of further progress towards their 2% inflation target. NAB’s Ray Attrill says it didn’t really change market pricing for a cut, with the first fully priced move still looking like December. But there was a fair bit discussed during the press conference, from the terminal rate, the impact of the election and the possibility of a rate hike. Jerome Powell gave a cautious ‘no’ to the rate hike. Listen in for the latest from the Fed and the latest data, including JOLTS from last night and Australia’s trade data today.

Wednesday 1st May 2024NAB Markets Research Disclaimer Financial Services Guide | Information on our services - NABA month-end a day out from the Fed decision in the midst of some earning results for some heavyweight stocks, its hardly surprising we saw a lot of volatility in bonds, currencies and equities in this session. NAB’s Skye Masters says yields pushed higher on the release of US employment costs, which were higher than expected, contribute g to more of a push back in the timing of Fed rate cuts. Jerome Powell would have to be uber hawkish to pish rates any higher says Skye, but we’ll know this time tomorrow. 

Tuesday 30th April 2024NAB Markets Research Disclaimer Financial Services Guide | Information on our services - NABGerman inflation numbers overnight were stickier than expected, presenting a challenge for the ECB, one of the few central banks that has been talking-up the mid-term rate cuts. Phil asks NAB’s Rodrigo Catril if this puts June cut in jeopardy, or the expected follow-up cuts later in the year. Elsewhere we saw a sharp reversal in the value of the Yen. Has it been driven by intervention, or at least the anticipation of it? Australia’s retail numbers will be the focus locally today.  

Monday 29th April 2024NAB Markets Research Disclaimer Financial Services Guide | Information on our services - NAB The US March PCE Deflator number on Friday was broadly in line with consensus, but NAB’s Tapas Strickland says upward revisions to the January and February numbers show inflation remains persistent which delays further the timing of cuts by the Fed. There weren’t big moves in bond yields but that could all change with a busy week for US data, including ISMs and Payrolls, along with Wednesday’s FOMC meeting. To add some spice to the equation The Wall Street Journal reported that Donald Trump, if he were to become President again, might challenge the independence of the central bank. There was a strong move down in the Yen on Friday after the Bank of Japan did little to support the currency and there’s a question as to whether they will lift rates at all this year. With inflation so low, do they need to?

Friday 26th April 2024Please note this communication is not a research report and has not been prepared by NAB Research analysts. Read the full disclaimer here.Australia is well placed in terms of natural resources for the green energy transition. We are already one of the world’s largest exporters of lithium, in-demand for the production of batteries, primarily for electric vehicles. Alison Reeve, Energy and Climate Deputy Program Director at the Grattan Institute, joins Phil to talk about how Australia can gain maximum benefit from the drive for NetZero. Can we, for example, move up the renewables value chain, so we don’t simply extract minerals and ship overseas. There’s an enormous opportunity, says Alison, provided we recognise the strengths we provide and where in the chain we stop adding value. In this wide raging discussion they also look at the growth of sodium-ion batteries, hydrogen’s place in Australia’s future and the pitfalls of localised solar cell production.

Wednesday 24th April 2024NAB Markets Research Disclaimer Financial Services Guide | Information on our services - NABIs stagflation on the horizon for America? It’s a question Phil puts to NAB’s Rodrigo Catril after we saw slower growth and rising prices in data out on Wednesday. Could slow growth impact the euphoria around the Magnificent Seven? Well not just yet, as Microsoft and Alphabet have both enjoyed double digit percentage growth in after-hours prices o the back of strong earnings data. They also discuss Australia’s latest CPI data which will mean a revised forecast from the RBA, but what does it do to the speed of rate cuts? And could the Bank of Japan surprise today, as the Yen hits another low?

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.