As the week closes, things to consider heading into the weekend include taper timing, developments in europe and the RBA Starting with Europe - last night proved how far they are from being out of the woods economically (socially/politically its even worse). Whilst i don't buy that inflation is good, it's what markets/politicians want - and will pressure ECB, especially with short term rates showing stress. Across the pond, taper timing is where the focus is, but the bigger question is being ignored - can the Fed ever end QE? They thought they'd wrap it up by early 2014 - there's no chance of that, and ignoring the PMI - employment is weakening, whatever the unemployment rate might say. Which leads to the RBA. A few people saying we're at the bottom of the cycle, but if Europe eases and the Fed can't taper (at least meaningfully), can the RBA ever hike?
Agree on the above, also interested in the China story. We are in November and the iron ore price + steel demand has been far more robust than many predicted and the PMI figures today again look robust. Also probably need to add some Melbourne Cup form guide research into the weekend agenda.