Aussie rates, Fed minutes and summer unknowns

LONDON, July 1 (Reuters) – Following are five big themes likely to dominate thinking of investors and traders in the coming week.


With markets into the second half of 2021, can the fast and furious run of the last 15 months keep going?

H1 saw some spectacular action: Oil soared 45%, one ‘meme’ stock loved by amateur traders rose more than 2,500%, Brazil’s currency went from zero to hero. But all that stimulus money also means U.S. inflation now annualises at 8% versus an average of just 3% over the last 100 years.

As Donald Rumsfeld, who died on Tuesday, said about something completely different: There are many known unknowns. COVID-19 is one, but BofA reckons only a market crash would now stop the Fed reining in stimulus before year-end.

Considering how much markets love cheap money, Q3 may be a bumpy ride.

– Fast and furious first half of 2021 keeps financial markets at full throttle.

Source: Reuters