Market Overview
Key Points:
• Worldwide coronavirus cases surpass 221.924 million with over 4.587 million official
deaths.
• New Zealand has 729 active community cases of coronavirus with 20 new cases yesterday. Meanwhile, the Australian State of New South Wales reported 1282 new cases and 5 deaths yesterday with Victoria 246
• Markets still predicts the RBNZ will raise rates at their October policy meeting
• With recent Bank of Canada negative turndown in GDP in the second quarter we are unlikely to see a taper of their bond purchases at tomorrow’s meeting
• UK inflation expectations out 1 year were unchanged at 3.1% but the bad news was the long-term forecast ticked up to 3.5% from 3.4%
Major Announcements last week:
- US pending Home Sales -1.8% vs 0.5% expected
- Canadian GDP fell 1.1% annualised in June instead of the 2.5% forecast
- Australian GDP second quarter 0.7% vs 0.5% predicted
- US Non Farm Payroll came in at a discouraging 235k compare to 720k predicted
- US Unemployment remains at 5.2% in August