Global stocks are surging to record highs after Nvidia’s very strong results. US yields and US$ rose overnight after FOMC minutes and speakers were cautious about an early Fed rate cut.
In our bonus deep dive interview, ANZ Economist Arindam Chakraborty reviews strong growth of foreign direct investment into Vietnam, particularly from Chinese firms setting up manufacturing there.
5 things to know:
The Nasdaq and S&P 500 surged 1.5-2.5% to record highs overnight after better-than-expected results from AI giant Nvidia. US bond yields and the US$ rose a bit after FOMC minutes and Fed speakers were cautious about early US rate cuts, says ANZ’s Head of G3 Economics Brian Martin.
Eurozone flash PMIs were better than expected, but the ECB is still likely to cut rates earlier than the Fed, says Brian.
The Bank of Korea held its policy rate steady at 3.5%, but one board member was open to an early cut. ANZ Economist Krystal Tan says that prompted the Bank’s Governor to say a cut in the first half of 2024 was unlikely.
ANZ Research has increased its forecast farmgate milk price for New Zealand’s 2023-24 season as global supply decreases. It’s set to rise again in 2024-25, ANZ Agricultural Economist Susan Kilsby says.
However, New Zealand’s agriculture sector in general is facing challenging global conditions, with rising freight costs and weak demand in China, says Susan.
Cheers
Bernard
PS: Catch you next week, where the focus is on whether the RBNZ hikes. As of this morning, markets see a 28% chance of an OCR hike at 2pm NZT on Wednesday. .
