Wednesday 28th August 2019

Markets have taken a hit as much of yesterday’s optimism subsides. As Phil Dobbie discusses with NAB’s Rodrigo Catril, when President Trump said at the G7 that China were ready to cut back to the negotiating table, it appears that was news to China. That’s raised tensions still higher, resulting in falls in equities and significant drops in bond yields. We’ve also seen a return of the inversion in 2yr – 10 year yields. There is some positive news around today though; MPs of various political colours met in the UK to plan how to stop a no-deal Brexit, and it looks likely that an election will be averted in Italy, with a Five Star – Democratic Party government expected to be formed tomorrow. At home, Q2 construction work are the numbers to watch for.