ANDIKA BULLETin 4 MAY 2024

Saturday edition instead of a Monday edition as there is a QLD public holiday on Monday.

The markets took on a Dickensian dimension this week as while "it was the worst of times (for economic data), it was the best of times (for stocks)"...

The US Macro Surprise Index continued its serial disappointment plunge into the red - the weakest since Feb 2023 (not helped at all by today's payrolls miss)...

Bad news was good news though as the market only had eyes for Powell's big taper and the buyback bonanza (from AAPL and the rest), and today's NFP Goldilocks results (175k vs. 240k expected) as wage softness helps to ease inflation fears.

USD dropped (AUD up over 66c) and US bond yields all fell so stonks had a great Friday and so did Bitcoin rocketing back up to USD$63K!

Which is nice to see recover after a brutal week of aggregate net outflows from BTC ETFs...

And finally, rate-cut expectations have surged this week with 2024 now pricing in two full cuts and 2025 three more cuts...

Is this what Powell wanted? To ease financial conditions again!?

Happy Saturday!

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