US stocks fall on valuation concerns. Australia’s monthly inflation picks up in August, posing questions for the Reserve Bank of Australia (RBA), and the Reserve Bank of New Zealand (RBNZ) has a new Governor from Sweden.
In part two of a Deep-Dive interview on China’s deflationary pressures, ANZ Chief Economist for Greater China Raymond Yeung looks at what authorities there can do to respond.
5 things to know in 5 minutes:
US stocks fell overnight as over-valuation concerns crept into markets. Meanwhile, the key news for Australian investors yesterday was the monthly CPI indicator ticking up to 3% annually in August, slightly above market expectations. ANZ Head of Australian Economics Adam Boyton says there may be upside risk to Q3 trimmed mean inflation.
Adam says while recent data has been strong, he’s still expecting another 25 basis point rate cut in November to bring the cash rate to 3.35%.
New Zealand has a new central bank Governor. Current Riksbank Deputy Deputy Governor Anna Breman will start on the 1st of December. ANZ New Zealand Chief Economist Sharon Zollner says New Zealand’s rate setting committee structure means the Governor won’t affect monetary policy decision-making in the near term.
Sharon says there are other areas a new Governor can have more influence over though, like bank capital reviews and the Reserve Bank’s research agenda.
Japan’s composite PMI was positive in September although indicated growth was the slowest in four months. Services activity remained solid, but manufacturing fell - hitting an 18-month low. ANZ FX Analyst Felix Ryan says elevated price growth also seems to be slowing.
Cheers,
Bernard.
PS: Catch you tomorrow with what the latest US GDP data could mean for the Fed’s rate cut path.
