The United States and Europe agreed a trade deal overnight that will see a 15% tariff applied to imports from Europe. Markets are looking ahead to the Fed’s decision on Thursday Asian time and US jobs on Friday night.
In our deep dive interview, ANZ Group Chief Economist Richard Yetsenga reports back from a trip he took to the United States this month.
5 things to know in 5 minutes:
Donald Trump has just announced a trade deal with the European Union which will see European imports tariffed at 15%, and the EU has agreed to spend heavily on US energy and military equipment. Markets were hopeful last week for a deal, which boosted European stocks, says ANZ’s Head of G3 Economics Brian Martin.
ANZ Economist Bansi Madhavani says markets will be focused this week on US non-farm payrolls for July, with growth of 101,000 expected, down from growth of 147,000 in June.
ANZ Senior International Economist Tom Kenny is watching the fallout from Japanese elections and its trade deal with the US. The tariffs are hitting Japan’s business confidence.
Tom says the Opposition’s desire to cut Japan’s consumption tax and its unhappiness with the Bank of Japan’s rate hikes are a worry for markets.
There is some good news for farmers in New Zealand with higher dairy prices, as ANZ New Zealand Chief Economist Sharon Zollner reports.
Cheers,
Bernard.
PS: Catch you tomorrow with market reaction and analysis of the big European US trade deal just signed.
