Last week saw choppy trading in global equity markets, driven mainly by the US 10-year treasury yield which rose to 1.5%, its highest level since June.

The prospect of tighter monetary policy pushed the yield higher, but it has since come back down to 1.46% as of Friday.

10-year US Treasury yield. Source:MarketWatch

Comments from US Fed Chairman Jerome Powell only added to market jitters, as he cautioned that the recent rise in inflation may last longer than expected, albeit temporarily.

“Inflation is elevated and will likely remain so in coming months before moderating,” Powell said.

He added that elevated inflation around the world was the result of supply chain disruptions, which would prove temporary.

“It’s very difficult to say how big the effects will be in the meantime, or how long they will last, but we do expect that we’ll get back, we’ll get through that,” Powell said.

Meanwhile on Thursday (US time), Congress passed a short term funding measure that would keep the US government running temporarily.

This came after US Treasurer Janet Yellen warned the US government will run out of money by October 18 if the debt ceiling is not raised, an event which could prove to be ‘catastrophic’.


Economic calendar for this week


Reserve Bank Board meeting. The market is expecting rates and tapering program to be unchanged.
Job advertisements. It was down 2.5% last month.
Retails sales. It was down 1.7% last month.
NAB business confidence. It was down 5 points last month.

THURSDAY: Weekly payrolls.

FRIDAY: RBA’s Financial Stability Review. It’s a paper that’s released twice per year, and contains an assessment of Australia’s financial system and potential risks in financial stability.

International calendar

US (US time)

WEDNESDAY: Non-farm employment change. The market expects an increase by 475,000 jobs.

THURSDAY: Jobless change. Around 15,000 jobs were cut last month.

FRIDAY: Non-farm payroll. The market expects an increase of 750,000 jobs in September, compared to 235,000 in August.

Europe (European time)

THURSDAY: The European Central Bank will publish its monetary policy meeting minutes.

Corporate calendar for this week

IPO: Alvo Minerals (ASX:ALV) – A mineral explorer that raised $10m at 25c a share.
IPO: NickelSearch (ASX:NIS) – A mineral explorer that raised $10m at 20c a share.

IPO: E79 Gold Mines (ASX:E79) – A mineral explorer that raised $10m at 20c a share.