The key here is that wage inflation would underpin sustained inflation across the whole economy. So if wages are heading higher, that’ll give the RBA confidence that inflation is sustainable.
First and foremost, the more important story than the Fed this week (in my opinion) is the recent reversal by China. Beijing has finally decided to lift its import ban on Australian coal
The miserable outlook for the world’s most important economy The Biden economic program — of more spending, higher taxes, more regulation, open borders, and a war on fossil fuels — is coming
I expect a tidal wave of investing cash to move to this area of biotech due to Pfizer and Moderna’s success, and this part of the biotech sphere will benefit in the same way Tesla did.
The surge in inflation numbers over the past few weeks has caught most people off guard, and I don’t think the market is well-positioned for a sustained period of high inflation.
Meanwhile, over in the US, the Fed finally pulled the ripcord on its taper talk, confirming that tapering will begin later this month. A decision that historically leads to a ‘taper tantrum’ from markets.
It’d be very contrarian to take trades on iron ore at this stage, and the coast might not be clear until some support comes in on the iron ore spot price.