Gold, silver and global stocks are down ahead of key US inflation data tonight, with investors switching into bonds, so yields fell overnight. UK GDP barely grew in the last nine months of 2025, which is expected to lead to BoE rate cuts.
In our Deep-Dive interview, ANZ Senior Commodities Strategist Daniel Hynes examines headwinds in the global iron ore market.
5 things to know in 5 minutes:
Data out overnight showed UK GDP rose just 1.3% in 2025, with growth in the last nine months of the year just 0.2%. ANZ Economist Bansi Madhavani expects the Bank of England will have to cut rates next month, and twice more before the end of the year.
Next on the agenda for global markets is US CPI data for January, out tonight Australia/New Zealand time. Bansi says any move higher may only be temporary.
As reported yesterday, ANZ Research has tweaked its macro forecasts for the Australian economy following last week’s RBA rate hike. ANZ Head of Australian Economics Adam Boyton says a slight downgrade to GDP growth sees his unemployment rate forecast rise a little bit.
In Japan, producer goods inflation continued to trend down in January, slipping to 2.3% from a year ago. Within that though, import prices rose annually by 0.5%, a big turnaround from being down 12% in mid-2025, notes ANZ Head of FX Research Mahjabeen Zaman.
Since Prime Minister Sanae Takaichi’s super-majority election win over the weekend, the Yen has strengthened while long-term bond yields have dropped. Mahjabeen says nuance around consumption tax policies may have been a factor.
Cheers,
Bernard.
PS: Catch you next week with what that US price data could mean for the timing of when the Fed might next cut rates.
