The ECB cuts rates overnight as expected, but reluctantly. Australian housing lending jumps in April as rental property investors build up a head of steam, while building work slows in New Zealand.
In our bonus deep dive interview, ANZ Senior Commodities Strategist Daniel Hynes reviews the OPEC+ meeting earlier this week and its impact on the oil market.
5 things to know:
The ECB became the first big central bank to cut rates last night, as expected, but ECB President Christine Lagarde appeared a reluctant cutter. Traders saw her hesitancy suggesting just one more cut this year, rather than two. ANZ’s Head of G3 Economics Brian Martin also saw the ECB being cautious.
Australia’s trade balance rose by A$1.7 billion in April to A$6.5 billion, following a sizeable dip in March. ANZ Economist Maddy Dunk says the shift was due to imports falling more than exports.
Australian housing lending rose 4.8% in April, outpacing the 3.8% bump in March. ANZ Senior Economist Blair Chapman says there has been strong investor loan growth in states which have seen house prices rise. Meanwhile, Corelogic’s measure of house prices rose 0.8% in May to be up 2.9% in 2024.
In New Zealand, the value of building work put in place fell 4% in Q1, driven by a 4.8% drop in residential work. ANZ Senior Economist Miles Workman says that comes off the back of weakening building consents over the past year.
Taiwan’s May CPI came in yesterday at 2.24% annually, close to the CBC’s 2% target. Market expectations were for 2.14%, says ANZ Economist Bansi Madhavani
Cheers
Bernard
PS: Catch you on Tuesday with reaction to US labour market data tonight, and what it could mean for the Fed’s rate cut track. Monday is a public holiday. Enjoy!
