Wednesday 4th August 2021Central banks seem to be taking a very optimistic view of the rate of recovery right now. The RBA has decided it will push ahead with its tapering of asset purchases, despite the protracted Sydney lockdown. The RBNZ’s Governor Orr has as good as said that the central bank will lift interest rates next month. The direction taken by the US Fed will be dependent on jobs numbers, making the non-farm payrolls data all that more important at the end of the week. Meanwhile US equities have bounced back as investors take stock of strong corporate earnings. NAB’s Tapas Strickland says 88% of S&P 500 companies have reported a positive earnings surprise for Q2. Of concern, though, are rising infection rates in China. Mass cancellation of flights has been influential in the fall in oil prices again overnight.

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