Gold, the S&P 500 and the Euro Stoxx 500 rose to fresh record-highs on enthusiasm about the Fed’s first rate cut and China’s wide-ranging stimulus. Key US inflation data tonight is the next focus for global interest rates.
In our bonus Deep Dive interview, ANZ Economist Dhiraj Nim sifts through India’s recent trade data to reveal why gold imports jumped in August.
5 things to know:
The S&P 500 and Eurostoxx 600 both rose overnight to fresh all-time record-highs overnight as investors celebrated China’s wide-ranging stimulus announcements this week. That also boosted the Aussie and Kiwi dollars to their highest levels since the beginning of 2023. Oil prices fell 3% on reports of extra production. All eyes tonight will be on US PCE inflation data, says ANZ Economist Bansi Madhavani.
Australian job vacancies fell 5.2% in August from May. ANZ Head of Australian Economics Adam Boyton says this is similar to evidence from the ANZ-Indeed Job Ads series of cooling demand for labour.
The RBA said recently that it had been surprised by ongoing labour market strength. Adam says the decline in jobs vacancies should start to be reflected in a slow down in jobs growth.
Gold hit a fresh high of US$2,700/oz overnight as traders raise expectations the Fed could cut another 50 bps in November. ANZ Senior Commodity Analyst Daniel Hynes says the Fed’s moves are driving gold demand.
ANZ Research sees gold on its way to US$2,900 an ounce by the end of 2025. Daniel says central bank and ETF demand are also powering gold’s rise.
Cheers
Bernard
PS: Catch you next week with a review of what US August PCE inflation data could mean for the Fed’s rate cut cycle.
