Daily Alert – Wednesday 4th August 2021: A quiet August beckons?

Mark NugentAugust 2021, Daily Alert

Daily Alert – Wednesday 4th August 2021: A quiet August beckons?

The markets are relatively quiet. Maybe, after 18 months of pandemic, we are finally going to get a quiet August. Market lore has it that August is quiet, but my trading history would bed to differ.

Yesterday was indecisive from a risk sentiment point-of-view, although most equities rose, the sentiment calculation being dragged down by the drop in the US 10-year yield. The exception was the Japan225 which underperformed as talk of a nationwide covid-related State of Emergency kept the index subdued.

Stellar employment numbers in New Zealand drove the NZD upwards, resulting in major NZ banks ANZ, ASB & BNZ all adjusted their interest rate hike forecasts. All three now expect the Official Cash Rate at 1.00% by year-end, as previously forecast by Westpac. That’s three 25 basis point hikes before year-end, if it comes to pass.

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