We’re getting a steady stream of data indicating the global economy is picking up real momentum. The US economy continues to brighten, Europe continues to turn in surprisingly strong data, and global manufacturing is looking up.
After a short run of consecutive down days, US stocks picked up again a little this week, and the ASX — partly driven by the outlook for the banking sector — has been shaping up for a run at the 6000 level again.
But some safe haven assets like government bonds have been rallying, too. What gives?
To discuss all this we’re joined by Laura Fitzsimmons, vice president for macro sales at JP Morgan. Fitzsimmons explains what data she’s watching, the policy challenges for the Trump administration, and the outlook for the ASX, the Australian dollar, and of course the risks in the Sydney and Melbourne property markets.
JP Morgan still has two RBA rate cuts pencilled in for this year, on the basis that inflation remains very low and the growth outlook remains muted. Fitzsimmons walks us through the rationale.
We also discuss our enthusiasm for global PMI gauges, and make time at the end to talk about what TV shows we’re watching. You can find the show on iTunes (where you can rate us or leave a review), or listen in below. Enjoy!