US stocks are down as the White House points out total tariffs on China actually add up to 145%. Gold jumps to a record high. China is set to cut interest rates in response to Trump’s tariffs. And New Zealand’s truck movements indicate a sluggish recovery.
In our bonus deep dive interview, ANZ Group Chief Economist Richard Yetsenga analyses yesterday’s pivot by Donald Trump to pause global tariff hikes, apart from China.
5 things to know in 5 minutes:
Gold jumped nearly $100 an ounce to a new record high of US$3,193.65 as US stocks and the US dollar fell sharply, along with oil prices, as reality set in over the extent of Donald Trump’s pivot yesterday. ANZ Head of G3 Economics Brian Martin explains why markets ignored a surprise 0.1% fall in the US Consumer Price Index in March, when a 0.1% rise had been expected.
China’s top policymakers met yesterday to discuss additional stimulus measures following the US President hiking tariffs on Chinese goods further this week. It comes as March inflation data fell 0.1% from a year ago - weaker than expected. ANZ Economist Vicky Xiao Zhou says rate cuts could be imminent.
The Monetary Authority of Singapore makes its next monetary policy decision on Monday, amid the turmoil. ANZ Head of Asia Research Khoon Goh expects further easing, to a neutral policy stance.
New Zealand’s economy does appear to be recovering - albeit sluggishly. ANZ New Zealand Chief Economist Sharon Zollner says an annual lift in heavy traffic movements of 2.3%, despite a monthly dip in March, is encouraging.
However, the sluggishness shows through in light traffic movements, which are more closely linked with the state of demand, as opposed to production. That index was down 0.4% year-on-year.
Cheers,
Bernard
PS: Catch you on Monday with global economic developments over the weekend ahead of markets opening.
