US stocks trade cautiously after Donald Trump sets a 25% tariff on car and car part imports. Gold hits a record high US$3,100/oz. Australia’s Federal Government borrowing task has jumped, and the People’s Bank of China turns dovish.
In our bonus deep dive interview, ANZ Head of Asia Research Khoon Goh analyses why heavy equity outflows from Asian economies are likely to keep flowing after a swathe of US tariff announcements due on April 2.
5 things to know in 5 minutes:
US stocks wobbled and bond yields rose afterDonald Trump announced 25% tariffs on cars and car part imports, starting April 3. Auto stocks in Asia and Europe fell. GM and Ford fell too. Gold jumped to a new record high over US$3,100/oz. ANZ Head of G3 Economics Brian Martin explains why financial markets seemed to take the news in their stride, for now.
The Australian Office of Financial Management has signalled a $150 billion bond issuance task in 2025/26, vs $100 billion in the current 2024/25 year, says ANZ Senior Rates Strategist Jack Chambers.
Jack says net issuance in the current financial year was quite low compared to the forecast deficit, leading to the jump in 2025-26.
Energy rebates in the Budget will continue to repress Australia’s headline inflation rate. ANZ Senior Economist Adelaide Timbrell says that keeps the focus on annual core inflation, which this week from 2.8% to 2.7% in February.
The People’s Bank of China appears to have turned dovish, says ANZ Senior China Strategist Zhaopeng Xing.
Cheers,
Bernard
PS: Catch you next week with a further look at the potential impact of the April 2 reciprocal tariffs expected from the Trump administration.
