• richard evans

S&P makes record highs...somehow!

Good morning

Risk sentiment seems to have improved a little overnight, can’t really see what has driven it, perhaps the idea that Powell will come across a little more cautious at Jackson Hole later in the week, or perhaps the fact that Pfizer has had their Covid vaccine gain full regulatory approval in the US. I’m still not entirely sure how the S&P continues to make new highs, but it closed at 4479, a record I believe. Bidens own labour secretary has warned of a possible slowdown in jobs next month due to a rise in Covid infections, this could be enough to slightly push back Fed tapering plans.

Meanwhile the Afghanistan crisis remains in the headlines, some talk of an extension to the deadline to get people out although the Taliban don’t seem to be up for any extension. Its nasty already, and could turn more nasty. China also in the headlines, the US warning that China re moving to exert power and intimidate others in the South China Seas.

GBP held onto mall gain yesterday, GBPUSD traded up above 1.3700, reaching close to 1.3750 before slipping back to 1.3725 where we are right now. GBP also managed to make some gains against EUR, EURGBP reaching 0.8545 (GBPEUR 1.1700) in early trading this morning.

There isn’t a great deal of economic data today, Its one of those days where I really feel I have little more to offer, either on the markets or in terms of general information, so I’m going to cut this one short and let you get on with your day. I’m up in the City for a couple of meetings today, will be interesting to see how many maskless people there are on the tube. I’ll report back tomorrow.

- 13.30 ECBs Schnabel speaks

- 15.00 US new home sales

- 23.45 NZ trade balance

- 00.55 RBAs Ellis speaks

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