The oil price holds overnight on hopes for a resolution to the Iran conflict which were later denied. Korea’s stock exchange plummets on energy cost fears. And Australia’s GDP jumps in the December quarter.
And then in our deep-dive interview, ANZ Senior Economist Adelaide Timbrell assesses the outlook for major infrastructure projects in Australia.
5 things to know in 5 minutes:
The oil price fell slightly overnight on reports Iran had reached out to the US to negotiate an end to the current conflict. However that was later denied by Iran. ANZ Economist in London Henry Russell says oil held through the session though, while equities rose.
South Korea’s stock index yesterday plunged 12% as investors assessed the impact of higher energy prices on key domestic companies and the economy. ANZ Economist Krystal Tan says the economy is vulnerable for several reasons.
Australia’s economy grew a strong 0.8% growth in the December quarter up from 0.5% in September. ANZ Senior Economist Adelaide Timbrell says that means a stronger starting point to 2026 than previously thought, although there were also comforting signs for the RBA in labour cost data.
Adelaide says the household consumption rose 0.3% to be up a solid 2.4% over the year. The household savings ratio also rose, to 6.9% from 6.1% in September as people went from expecting more rate cuts, to rate hikes.
New Zealand’s merchandise terms of trade rose 3.7% in Q4, to hit a new record high. ANZ Senior Economist Matthew Galt says export prices were underpinned by aluminium and meat, while lower dairy prices didn’t weigh much on the result.
Bernard.
PS: Catch you tomorrow with analysis of Australian household spending in January.
