Peace talks between Iran and the United States collapse. Donald Trump says the US Navy will blockade the Strait of Hormuz and stop tankers on the high seas that have paid Iran tolls. And US inflation spikes, which pushes consumer confidence down.
And then in our deep-dive interview, ANZ Group Economist Richard Yetsenga assesses how much damage has been done so far to global economic momentum.
5 things to know in 5 minutes:
Peace talks between Iranian and negotiators collapsed without a resolution yesterday, with Iran refusing to give up its nuclear material or control of the Strait of Hormuz. Donald Trump then said the US Navy would stop all ships going in and out of the Strait of Hormuz. ANZ Group Chief Economist Richard Yetsenga says it’s likely to be a difficult day for financial markets when they open in Asia.
Headline US CPI rose 0.9% in March from February, treble the 0.3% seen in the month of February. That was all about a 21.2% rise in gasoline prices. ANZ Economist Henry Russell says the underlying details were more encouraging.
US consumer confidence hit a record low in April.
ANZ’s Head of FX Research Mahjabeen Zaman says higher oil prices have driven the US dollar higher.
China’s CPI inflation of 1% in March and PPI inflation of 0.5% marked the end of three and a half years deflation, says ANZ Senior China Strategist Zhaopeng Xing.
Cheers
Bernard.
PS: Catch you tomorrow with a deep-dive interview with ANZ Senior Commodity Strategist Daniel Hynes about how long it might take to restore oil flows, even if the Strait of Hormuz opens up soon.
