News

Australia’s growth forecasts have been revised higher as optimism over economic rebound heightens  with Westpac Chief economist expecting GDP growth of 4.5% this year, instead of 4%. 

US stocks climbed and Treasuries rotated higher on Friday after a bumper US payrolls report.

US markets were choppy in the morning ahead of a speech by Federal Reserve Chair Jerome Powell, before sinking in the early afternoon when he showed no sign of wanting to intervene to arrest the pace of rising bond yields. 

As we have discussed previously, financial stocks  all else equal benefit from higher interest rates as it improves bank interest margins. 

Closer to home, the RBA’s policy update yesterday turned out to be fairly routine, with rates guidance unchanged and the Bank reiterating that conditions for a hike were not likely until 2024 at the earliest.