• Clifford Bennett, Chief Economist at ACY


• 03.12.2021 09:15 am
#stocks

Yo-Yo markets often end on a low.

Down again, up again, the daily ranges of the US stock market are a thing to behold. Yet, we remain in big decline territory.

The question on everyone's lips; is this a buying opportunity? As you know, I believe caution and respect of the downside potential is more appropriate for the time being. Running the risk of 'missing out' is not all that fashionable an exercise these days. Though it may prove the more profitable course.

US New Jobless Claims have normalised.

This is the kind of territory we were accustomed to pre-Covid.

Australian Construction PMI pipeline.

Continuing flow-through impact from stimulus measures, infrastructure and resumption of more normal activity on worksites is likely to keep construction data elevated. It is what comes next, after this stage, that really needs our attention. There are a lot of buildings going up all around the nation, and whether these will be easily tenanted remains to be seen.

Eurozone Producer Inflation diabolical.

While the Federal Reserve debates the meaning of a word, transitory, it has been clear for at least six months that all around the world inflation was going higher. This is a sea change that has legs. It is a global phenomenon of 'freedom of pricing'. Viewing the world in this way, it all becomes somewhat clearer than Powell's Senate delivery.

AUDUSD Weekly.

The Aussie dollar is currently contemplating its latest major break lower. After five weeks of sharp decline, as we expected, it is most certainly due a reasonable upward correction. Nevertheless, with the fundamental backdrop being what it is, and a rather significant air pocket and void just below, one should be mindful that the dominant risk remains lower at all times.