Global markets are in animated suspension this morning ahead of the Fed’s decision at 6am Sydney/Melbourne time. Australia’s budget is healthier after solid income tax and mining royalty growth.
In our bonus deep-dive interview, ANZ’s Head of Asia Research Khoon Goh explains how Vietnam’s economy can keep growing, even after its demographic dividend has ended.
5 things to know
Global markets are on tenterhooks for the Fed’s decision due after 6am Sydney/Melbourne time. Markets expect a hold, but will be watching the dot plot to see whether market expectations are too far ahead of the Fed.
Australia’s Federal Budget has improved sharply on stronger tax revenues, which may create room for fiscal stimulus next year, says ANZ Rates Strategist Jack Chambers.
Bracket creep and mining royalties are helping to drive the Budget improvement.
The RBNZ’s rate hikes are bearing down on NZ GDP. Q3 data due later today is expected to show a slowing to 0.3% from 0.9% in Q2, says ANZ NZ Chief Economist Sharon Zollner.
Investors hoping for more stimulus from China’s Central Economic Work Conference were disappointed, says ANZ China’s Senior Rates Strategist Zhaopeng Xing.
Cheers
Bernard
PS: Look out tomorrow morning for analysis of the Fed’s decision and NZ economic growth.
