Wednesday 10th June 2020

The rally in equities has stalled for now – except for the NASDAQ. Phil Dobbie asks NAB’s Tapass Strickland whether caution is growing or just a bit of short-term profiteering. The cautionary air could relate to concerns about a second wave of infections. In Australia there are more grounds for optimism, but the Aussie dollar is weaker, even though the Treasury has revised down peak unemployment, from 10% to 8%. No new virus cases add to Australia’s good news, although China’s warning for students to stay away offsets some of that positivity. Tomorrow morning all eyes will be on the Fed, with the FOMC meeting wrapping up with a press conference just ahead of tomorrow’s Morning Call podcast.