Australian wages are rising faster than prices for the first time in three years. Chinese stocks jump after new selling bans are imposed. A Fed President makes hawkish comments. Indonesia holds its main policy rate.
In our bonus deep dive interview, ANZ Group Chief Economist Richard Yetsenga looks at opportunities in 2024 from politics, Asia and climate trends — it’s not all just about interest rates.
5 things to know:
Chinese stocks rallied after authorities banned big fund managers from selling shares at the open and close of trade. Also, Richmond Fed President Tom Barkin spoke hawkishly overnight, saying he worries services inflation is too high.
The Bank of England also wants services inflation to ease so rate cuts can start from August, says ANZ Economist Bansi Madhavani.
Australian wages grew 4.2% in the December quarter from a year ago, which was the first time it was faster than CPI inflation (4.1%) since early 2021. Household real incomes should improve later in 2024, says ANZ Senior Economist Catherine Birch.
The wages data won’t shift the RBA from tracking towards a November cut, although it will be looking for productivity gains to be comfortable, Catherine says.
Indonesia’s central bank held its key rate steady at 6% overnight as it looks to support its currency. It will be sitting tight until the Fed moves, ANZ Economist Krystal Tan says.
Cheers
Bernard
PS: Catch you tomorrow with a review of FOMC minutes out shortly.
