Markets are quiet with the US on Thanksgiving holiday. Data centres underpin an Australian investment jump, putting further pressure on RBA to hold rates. And The Bank of Korea holds rates.
In our Deep-Dive interview, ANZ’s New Zealand Business Outlook hit its highest point in a decade - something ANZ New Zealand Chief Economist Sharon Zollner says shows the economy has turned.
5 things to know in 5 minutes:
ANZ Economist Henry Russell says the ECB remains open to further easing, which it needs to do, given Europe’s subdued lending recovery and a yet-to-appear fiscal stimulus.
The UK Autumn Budget yesterday saw pre-announcement market moves as the forecasts were accidentally released before the Chancellor’s Parliamentary speech. But as ANZ FX Strategist Preksha Jain explains, markets were soon calmed by the fiscal room opened up through tax increases.
Australian private capex investment leapt 6.4% in the third quarter, well above market expectations for 0.5%. ANZ Senior Economist Adelaide Timbrell says data centre investment drove the strength, which puts further pressure on the RBA to hold rates.
The Bank of Korea held its benchmark rate at 2.5% as expected, as worries around the housing market and currency volatility persisted. ANZ Economist Krystal Tan says there was a fall in the number of policymakers open to a rate cut in the next three months.
Retail sales in New Zealand rose by 1.9% in the third quarter - stronger than expectations. ANZ Senior Economist Matthew Galt says that presents more upside risk to ANZ Research’s forecast for GDP to rise 0.5% in the quarter.
Cheers,
Bernard.
Catch you next week with a look at the latest Australian private sector credit data.
