12 March 2018
Bassanese Bites: Don’t worry, be happy – Week beginning: 12 March 2018
Last week many of the dark clouds hanging over the global economy appeared to lift somewhat, with signs that new US steel tariffs might not be as widespread as feared, North Korea could be prepared to give up its nuclear ambitions and US wage inflation remained reasonably well contained.
America’s S&P 500 Index rebounded 3.5% in the week, and the NASDAQ-100 touched a new record high. Australia’s S&P/ASX 200 Index is set to start with week on a strong note, with futures prices pointing to a rise of around 1% at the open. Importantly, bond yields only lift a tad, with US 10-year yields ending the week up 3bps to 2.89% – and still below the much fear 3% “line in the sand.” The risk on move was reflected in a decline in the $US and rise in the $A – the latter coming despite a drop in iron ore prices.
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