US President Joe Biden announced this morning he won’t seek a second term. That’s after US tech stocks fell sharply on Friday night on the Crowdstrike tech outages. Australasian and Asian markets will trade first after the news.
In our bonus deep dive interview ANZ’s Head of Australian Economics Adam Boyton explains how Australian households are saving a lot more than many think.
5 things to know:
In markets news, US President Joe Biden has reopened the contest for the US presidency, announcing this morning he won’t seek a second term. Markets will react first in our time zone this morning. That’s after the Nasdaq fell 0.8% and the S&P 500 fell 0.7% to record their worst weeks since April on Friday night after the Crowdstrike tech outages. The Kiwi/Aussie cross fell 0.3% to below 90 Aussie cents for the first time since October last year. The sees the RBNZ set to cut soon, just as the RBA might hike. ANZ Group Chief Economist Richard Yetsenga is not so sure about that divergence.
Aside from Biden’s announcement, he main focus for markets in Asia today will be the People’s Bank of China’s decision on its one year Loan Prime Rate, where markets expect it to hold at 3.45%.
The other big focus on global markets this week is US PCE and GDP data on Thursday night: Richard sees a continued slowdown in US GDP, but the Fed will be most focused on PCE inflation data.
The results of last week’s once-in-a-decade Third Plenum meeting of China’s leadership didn’t deliver any sort of big-bang stimulus that a few might have hoped for, says ANZ’s Chief Economist for Greater China Raymond Yeung.
Malaysian GDP rose 5.8% in the June quarter from a year ago, which was above the consensus of forecasts of around 4.7%, says ANZ Asia Economist Arindam Chakraborty.
Cheers
Bernard
PS: Catch you tomorrow with a closer look at the nuances out of the Third Plenum meeting in a deep dive interview with Raymond Yeung.
