Stocks hit fresh record highs after the Fed’s rate cut, with another four forecast. Australia’s jobs growth disappoints in August, and New Zealand’s economy contracted much more than expected in Q2.
In in part two of a Deep-Dive interview, ANZ Senior Commodities Strategist Daniel Hynes continues his analysis of the world’s diverging oil market.
5 things to know in 5 minutes:
US stocks continued their rally after the Fed cut yesterday and signalled more to come. The US 10 year yield also bounced decisively off 4.0% to be 4.10% by 4am Sydney/Melbourne time. ANZ Economist Bansi Madhavani says there’s plenty more rate cuts to come from the Fed.
Australia’s jobs growth disappointed in August, with employment falling five-and-a-half thousand compared to expectations for a 21,000 increase. ANZ Economist Aaron Luk says forward indicators are looking solid though.
The unemployment rate remained at 4.2%. Aaron says the Reserve Bank of Australia should stick with the expected course of holding rates at the end of this month, with a cut on the cards for November.
New Zealand’s economy contracted 0.9% in the June quarter - more than double the expected drop. ANZ Senior Economist Matt Galt says weakness across services, construction and manufacturing led the fall.
The result led to an increase in market expectations that the Reserve Bank could cut the Official Cash Rate by 50 basis points in early October. Matt says the result doesn’t quite meet the bar in ANZ Research’s view.
Cheers,
Bernard.
PS: Catch you tomorrow with analysis of the Bank of Japan’s rate decision today - ANZ Research expects a hold.
