Markets are oscillating in tune with their views on when the Fed can cut, and it’s still not clear. We look ahead to Australian inflation data on Wednesday and New Zealand’s Budget on Thursday.
In our bonus deep dive interview, ANZ Senior Commodities Strategist Daniel Hynes analyses what China’s recent property market support package could mean for steel demand and the price of iron ore.
5 things to know:
Markets are wobbling back and forth in line with mixed signals from the US economy about whether and when the US Federal Reserve can cut rates. ANZ Group Chief Economist Richard Yetsenga looks at the ups and downs.
The big data globally this week is US Personal Consumption Expenditure (PCE) inflation data for April due on Friday night after less-closely watched US GDP data. Richard previews the numbers.
Australia’s monthly CPI inflation data is due on Wednesday. Richard sees annual inflation slowing, but the last leg down will be slow.
European inflation data is also due on Friday. The European Central Bank is on track to cut before the Fed. ANZ Head of G3 Economics Brian Martin says it could be as early as next month.
New Zealand’s new Government will unveil details of tax cuts promised in last year’s election in its first Budget on Thursday, although ANZ Senior Economist Miles Workman says it’s not clear the tax cuts will boost economic activity.
Cheers
Bernard
PS: Catch you tomorrow with the detail from China industrial production data due later today.
