Hopes remain as real data starts to flow in

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NAB Morning Call 14 min 2 speakers 8 chapters transcribed 20 days ago
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What key economic data releases are shaping today’s market outlook?

Phil Dobbie 0:01
Well, we are in the thick of economic data today. Aussie CPI and European GDP and US GDP as well. US wages, the core PC deflator. We've just seen weaker confidence in the conference board survey. We still see equity markets rising. No big earnings today, but for the rest of this week, there's some really big ones. And that Trump rally, his 100-day rally, it's gonna be beautiful. It's gonna be on very soon. You've never seen anything like it in your life. Life. I don't think there's ever been anything like it before, and it's on soon. It's Wednesday, the 30th of April 2025. It's the morning call from NAB. Good morning. So the US dollar is up a little again today, just 0.3% of the DXY. The Aussie, though, down three quarters of one percent to around sixty-three point eight US cents.
Phil Dobbie 0:45
The pound is down naught point three percent, same for the euro, half percent lower for the Swiss franc, the yen is down naught point two per cent. So a sort of risk positive kind of day, you might think, because shares are up leaps and bounds in the US. Up 0.7% for the Dow at the close, 0.6% for the S P half percent for the Nasdaq, but the Eurostocks fifty is down naught point two percent, even though the FTSE one hundred is up naught point six percent, the DAX is up naught point seven percent. But bond prices uh are rising as well in the United States, taking yields lower, so down five basis points for ten year treasuries, down three for ten year guilts in the UK, down two for German bund yields as well.
Phil Dobbie 1:24
Aussie ten years yesterday up two basis points to four point. One eight per cent.

Why are US equity markets rallying despite weaker consumer confidence?

Phil Dobbie 1:28
Now just one basis point higher at that uh to four point one nine percent. And oil quite a bit lower as well, two point eight percent off two uh WTI, two and a half percent off Brent, Brent hovering just over sixty-four a barrel now. So trying to make sense out of all of that, uh here's Nav's Taylor Nugent. I mean, it seems we are in the upward phase in the US equity markets for the moment, anyway. So the S P in the last six days. Days has risen eight percent, which is actually the best six days since March twenty twenty two. I mean, six days earlier, of course, you know, we were on the slide. But it's curious, isn't it? This rise in uncertainty. We've got companies reporting, refusing to give forward guidance because there's too many known unknowns.
Phil Dobbie 2:09
So what is this? Just a bit of blind faith? Is it a bit of fear of missing out because there's going to be a bounce? It is uh you know, just explain what's going on, Taylor.
Taylor Nugent 2:16
Yeah, good good morning, Phil. As you say, another another positive day for for US equities. Um I think, you know, there's a bit in the background there, but really it just looks like again a bit of a retreat from those kind of peak concerns about about the US outlook and that you know potential end of US exceptionalism, sell America trade, however you want to refer to it. There does seem to be a little bit of a an ongoing pull back for now at least from from some of the Those fears. And I think when we look over the last 24 hours at least, we did get a round of of pretty soft second-tier data in the US that I'm sure we'll talk about in a second. Equities did op open lower but have kind of crept higher during the day, supported by a couple of headlines.
Taylor Nugent 2:58
One in particular from uh the Commerce Secretary Howard Lutnik, who said in a CNBC interview that his rates to trade deal. Um with an unnamed country at at this point. Um he is uh he's wait he's waiting for their Prime Minister in Parliament to to give approval, he said, but he expects that shortly. Well then
Phil Dobbie 3:16
now is it down, they got a Prime Minister.
Taylor Nugent 3:18
Exactly, yes. So but uh that that was um that kind of headline was was a bit of support for that kind of sentiment as well. And I think, you know, it it kind of the other thing to note here is that kind of the US dollar is is up on the day as well. And kind of, you know, that those n ordinary risk sensitive uh kind of kind of dynamics. You've got the Australian dollar and the the Kiwi dollar down towards the bottom end of the um the G ten leaderboard is

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