US tech stocks fall. The Bank of Japan holds rates, but signals more are coming. UK rate cut bets fall after the new Government’s budget. Australian retail sales jump, and China’s manufacturing sector expands ahead of further stimulus expected next week.
In our bonus Deep Dive interview, ANZ Economist Vicky Xiao Zhou looks at the rise …and rise of China’s electric vehicle industry.
5 things to know:
Tech stocks fell overnight after weak profit outlooks from Meta and Microsoft. The Bank of Japan held rates. The new UK Government’s budget saw rate cut bets for the Bank of England fall, says Head of G3 Economics Brian Martin.
Australian retail sales volumes posted their strongest growth since mid-2022 in the third quarter, rising 0.5%, in line with expectations. ANZ Economist Maddy Dunk says the combined impact of cost-of-living relief, moderating inflation and tax cuts is flowing through to a modest pickup in spending.
Private sector credit growth in Australia was 0.5% for the third month in a row in September. Maddy says, within that, a rise in housing credit caught the eye against the backdrop of a cooling housing market.
New Zealand’s business confidence continued its march upward in October, hitting a fresh 10-year high of +66 in ANZ’s Business Outlook survey. ANZ New Zealand Chief Economist Sharon Zollner says it looks clear that rate cuts by the Reserve Bank are having a real effect.
In China, a surprise expansion in manufacturing activity in October, albeit only just at a PMI reading of 50.1, has boosted hope that recent stimulus efforts are working. ANZ Economist Vicky Xiao Zhou says the expansion added to anticipation around further stimulus announcements expected next week.
Cheers
Bernard
PS: Catch you next week with analysis of tonight’s US jobs market report and what it could mean for the Fed in November and December.
