India’s markets are expected to celebrate after exit polls saw Narendra Modi winning a third term. India’s GDP was also above forecasts. China’s factory activity contracted in May. Australia’s Fair Work Commission is set to slow minimum wage inflation.
In our bonus deep dive interview, ANZ Chief Economist for Southeast Asia and India Sanjay Mathur explains how extreme temperatures in India, the Philippines and Indonesia are upending rice markets again.
5 things to know:
Exit polls out over the weekend from India’s six-week-long general elections show Narendra Modi’s BJP party has won a third five-year term. ANZ FX Strategist Dhiraj Nim says markets will welcome policy continuity.
Global markets ended last week broadly higher after US PCE Personal Consumption Expenditure data on price inflation was in line with expectations, says ANZ’s Senior Rates Strategist Jack Chambers.
China’s manufacturing PMI fell to 49.5 in May from 50.6 in April. ANZ’s Chief Economist for Greater China Raymond Yeung points in particular to a sharp weakening in export orders.
Australia’s Fair Work Commission will release its annual review of minimum and award wages today. Last year the increase was 5.75%. Jack Chambers says he’s expecting somewhere between 3.5% to 4% from July 1.
India’s GDP grew 8.2% in Q1 from a year ago, which was much better than expected. However, Dhiraj Nim sees growth slowing this year, although not enough to bring the Reserve Bank of India in off the sidelines to cut
Cheers
Bernard
PS: Catch you tomorrow as we preview Australian GDP data on Wednesday and Thursday night’s ECB decision, before US non-farm payrolls data on Friday night.
