Wednesday 6th May 2020

The Euro and Italian bonds took a hit overnight with German judges challenging the ECB on its QE activity. NAB’s Tapas Strickland says it won’t interrupt the bank’s current bond buying, including the pandemic emergency purchase program, and would not over-rule any decision from the European Court of Justice. It does demonstrate, again, the complexity of the European experiment. Elsewhere, optimism abounds around a return to work, pushing equities up in the US and Europe, and helping a resurgence in oil. This has been helped by the news that Pfizer and BioNTech might have a vaccine ready by September if their trials in the US are successful. Did you notice the word IF in that sentence?