Comments of a slowing European economy and weak inflation by the European Central Bank President Mario Draghi last week were more than enough for stock markets to record highs and bond yields to record lows.
In the US, the S&P/500 index breached the 2,000 level for the first time ever, a stunning 200% gain from the lows following the GFC. Similarly, US bond yields fell to record lows.
A big week locally with plenty of upcoming data, as well as the regular Reserve Bank board meeting this week. While no rate move is almost a “given” the accompanying commentary will gain some attention.
For economic data this week, the second quarter economic growth (GDP) data will be the main focus as the June quarter is expected to post only a small rise.