Oil prices slide nearly 5% as tensions ease in the Middle East. US job losses are less than expected. The Bank of Korea ends its rate cutting cycle and the European Central Bank faces an inflation undershoot.
In our Deep-Dive interview, ANZ’s Head of Asia Research, Khoon Goh, explains why China’s currency is likely to keep appreciating.
5 things to know in 5 minutes:
US jobless claims fell in data out overnight, when a rise had been expected. ANZ Economist in London Henry Russell says the timing of holidays can distort the figures, but the lack of job losses was notable.
Henry says investor expectations for the next Fed cut softened after the jobless claims data.
The Bank of Korea held its policy rate at 2.5% yesterday, which was expected. ANZ Economist Krystal Tan says the real news was its outlook for no more rate cuts.
Krystal says the Bank of Korea is likely to wait for clearer signs of broadening growth without an overshoot of its 2% inflation target before hiking.
The European Central Bank is likely to have to keep cutting rates from 2% now to 1.5% this year, says Henry, with growing risks of an inflation undershoot below its 2% target.
Cheers,
Bernard.
Catch you next week with more on the Fed’s outlook.
