America’s economy is still generating solid jobs growth while on track for a soft landing, but China’s has slowed so much it’s producing deflation.
5 things to know
US jobs grew 199,000 and unemployment fell to 3.7% in November. ANZ Group Chief Economist Richard Yetsenga sees the US economy slowing comfortably.
But China’s CPI fell 0.5% in November vs a year ago, which was more than double expected deflation and on top of 0.2% deflation in October.
The Fed, ECB and Bank of England are expected to hold their official rates this week.
The Reserve Bank of India held its cash rate at 6.5% and remained hawkish on inflation alert, as expected. It lifted its GDP growth forecast, but not its inflation view.
ANZ’s Senior Commodities Strategist Daniel Hynes says surprisingly strong US oil output has been a factor in oil prices falling.
Cheers
Bernard
PS: Look out tomorrow for part two of Adelaide’s interview on Australian house prices
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