Weaker-than-expected US jobs growth data fueled an extension of rallies in global bonds and stocks. Risk currencies rose strongly.
In our bonus deep-dive interview, ANZ’s Group Chief Economist Richard Yetsenga looks ahead to the RBA’s rates decision and key China data this week.
5 things to know
Global stocks and bonds finished last week strongly after US jobs growth data was weaker than expected. The S&P 500 closed up 0.94% and the US 10-year fell to 4.57%. The Aussie opens up at 65.13 USc. The Kiwi is at 59.98.
US jobs grew 150,000 in October, which was almost half a downwardly revised 297,000 in September and below the market consensus for 180,000. ANZ’s Head of G3 Economics Brian Martin says the data cemented in expectations the Fed has finished tightening.
Eurozone unemployment rose 0.1% in September to 6.5%. Brian now sees a mild recession in the Euro zone area in the second half of this year.
Australia’s retail sales volumes rose for the first time in a year, but the annual trend remains weak, says ANZ Australia Economist Maddy Dunk.
US oil refining margins have fallen sharply in recent months, suggesting weakening economic activity, ANZ Senior Commodity Strategist Daniel Hynes writes.
Cheers
Bernard
Look out tomorrow, Melbourne Cup day, for a full preview of the RBA’s decision.
