Markets have yet to open after the lightening-fast overthrow of Bashar al-Assad’s regime in Syria over the weekend, which may further destabilise the Middle East. The Fed is seen on track to cut again next week. The RBA is expected to hold tomorrow.
In our bonus deep-dive interview, ANZ Senior China Strategist Zhaopeng Xing explains why he’s watching for a potential GDP target downgrade from China’s annual Central Economic Work Conference this week.
5 things to know:
Markets have yet to react to the overthrow of Bashar al-Assad in Syria, with the focus on Friday night on US Non farm payrolls. Jobs growth in November of 217,000 was broadly in line with expectations, but the unemployment rate rose 0.1% to 4.2%, says ANZ Economist Bansi Madhavani.
The Reserve Bank of Australia makes its final rates decision of the year tomorrow. ANZ’s Group Chief Economist Richard Yetsenga expects no change.
ANZ’s Senior China Strategist Zhaopeng Xing is also looking out for China to report flat CPI and PPI inflation figures for November later today.
The Reserve Bank of India left its official cash rate on hold on Friday night, dashing market hopes for a cut. But it did ease the reserve requirement ratio for banks by 50 basis points, which ANZ India Economist Dhiraj Nim says will allow banks to pump extra cash into the economy. He sees a rate cut in February.
Vietnam’s annual inflation rate fell in November to 2.77% from 2.89% in October, which was softer than market expectations, says ANZ FX Analyst Kausani Basak.
Cheers
Bernard
PS: Catch you tomorrow with a deeper preview of the Reserve Bank of Australia’s final rates decision of the year.
