Friday, 9th November, 2018
An element of calm has returned to markets, with global equities staging a modest rally following their earlier October rout. Aside from nervously watching equity markets, market focus will be on central banks and US politics. No changes to policy settings are expected from the RBA, RBNZ and US Federal Reserve, but the tone of policy assessments will have a bearing on market direction. A “business as usual” message is widely expected to be delivered. Any change in tone acknowledging recent equity market volatility and the growing (downward) risk profile will likely trigger a rally in global rates (yields lower) and potentially lower the NZD. Q3 labour market data headline the local data calendar.