US stocks are down around 1% and US Treasury yields are up 3-5 basis points on concerns big central bank speeches tonight could be hawkish. US second tier data was stronger than flash PMIs indicated.
In our bonus deep-dive interview, ANZ’s Chief Economist for Greater China Raymond Yeung explains the downturn in China’s property market and the wider macro-economic implications.
5 things to know
US stock and bond markets sold off modestly this morning on rekindled fears central bankers will be hawkish in big speeches this weekend.
ANZ’s Head of G3 Economics Brian Martin notes second-tier US economic data overnight was solid, contrasting with weak flash PMIs on Wednesday.
The Bank of Korea held its policy rate yesterday, but is remaining hawkish, says ANZ’s Asia Economist Krystal Tan.
President Xi Jinping wants the BRICS to use the renminbi more in trade and investment. The BRICS will include Saudi Arabia, Iran and Egypt from Jan 1.
Iran is improving its diplomatic relations in the Middle East and elsewhere, allowing it to export more oil, which is helping drag prices down, says ANZ Senior Commodities Strategist Daniel Hynes.
Cheers
Bernard
PS: Look out on Monday morning for the reaction after big speeches from Fed Chair Jerome Powell and ECB President Christine Lagarde at Jackson Hole tonight.
