Strong global economic sentiment - ANZ

Analysts at ANZ note that global equities continued their upward march as corporate earnings impressed and Q4 US consumption grew 3.8% y/y.

Key Quotes

“US equities pushed up 0.9-1.3% and European bourses climbed 0.3-0.9%. Global yields pushed higher as signs inflationary pressures are building with US GDP deflator at 2.4% y/y and core PCE deflator increasing to 1.9% y/y.”

“Owing to the recovery in breakeven inflation, the FOMC statement may have to upgrade the language around inflation compensation being low. 10yr breakeven inflation is now back at its long run average and its average for the decade prior to the GFC. Oil prices continued to rise (1%) and are now some 57% above June lows.”