To describe the market reaction after non-farm payrolls in the US on Friday as “strange” is probably an understatement. Strong numbers despite the effect of the Delta variant (a million jobs in just a few months) and strong wages growth are all contributing to a good narrative. Having said this, the labour participation rate is critical. Isaac argues it needs to increase to prevent wages spiraling – and that is the risk with the employment cost index at 6% annualized in Q3. So is it just structural shifts that will dissipate soon or is this great resignation something far more serious? Either way, markets are still a bit too ahead of themselves, according to Isaac Poole from Oreana Financial Services. Meanwhile, we wrap the battle of the major central banks. It’s clear the Fed was the big winner in massaging market expectations (unlike the Bank of England). But what does their thinking mean for markets? Listen in and find out. (Source: Ausbiz)

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