NAB Morning Call US ISM shines above war clouds
9 snips
Mar 4, 2026 Ken Crompton, NAB markets economist and strategist, gives quick market commentary and economic analysis. He discusses US ISM strength and the spike in export orders. He explains Asia’s volatility, notably South Korea’s AI-driven KOSPI plunge. He also contrasts China PMI readings and reviews Australia’s growth versus soft household consumption.
AI Snips
Chapters
Transcript
Episode notes
KOSPI Crash Fueled By Leveraged AI Frenzy
- South Korea's KOSPI plunged in a leveraged unwind after an AI-driven surge, falling about 14% in one day and ~20% over a couple of days.
- Ken Crompton links the move to heavy leverage and rapid de-risking amplifying declines after prior ~50% YTD gains.
Divergence Between ISM Services And PMIs
- US ISM Services was strong at 56.1 with new orders up 5.5 points and export orders jumping from 45 to 57.2.
- That ISM strength widened a persistent gap with PMIs, which were much softer, creating a data divergence to watch for Fed implications.
ISM Prices Eased But Remain Elevated
- Prices component in ISM eased from 66.6 to 63, signalling slower input cost growth though levels remain elevated.
- Ken Crompton warns that even with easing, absolute price levels still matter for Fed policy decisions.