Global markets are mixed, although tension is building around France’s budget crisis. The Bank of Korea unexpectedly cuts rates. Australian capital expenditure resumes growing, while New Zealand business confidence continues to firm.
In our bonus deep dive interview, ANZ FX Analyst Kausani Basak reviews how Vietnam’s economy has rebounded from Typhoon Yagi and how its export sector could be affected by incoming US tariffs.
5 things to know:
Global markets were mixed overnight, although there are fears a budget crisis could bring down France’s Government. The premium for French bonds to German bonds hit its worst level since the 2012 euro crisis. Meanwhile, The Bank of Korea delivered a surprise back-to-back 25 basis point rate cut, says ANZ Economist Krystal Tan.
Australian private capital expenditure rose 1.1% in Q3, following a fall in Q2. However, ANZ Senior Economist Adelaide Timbrell says there has been a softening of 2024/25 plans.
Business confidence in ANZ’s New Zealand Business Outlook improved. While headline activity eased one point to +65, ANZ New Zealand Chief Economist Sharon Zollner says that’s still high. Expected own activity rose 2 points to +48.
Sharon says the sectors that were most negatively affected by high interest rates are now showing the greatest signs of relief.
New Zealand’s monthly employment indicator showed the number of filled jobs down 0.1% in October, the seventh monthly decline in a row. ANZ Senior Economist Miles Workman says the numbers were in line with expectations.
Cheers
Bernard
PS: Catch you next week with a look at how Australia’s economy performed over Q3.
