Oil prices surged again overnight to new 10-month highs of almost US$97/bbl after US oil inventories fell to their lowest levels in over a year. US bond yields rose again and US stocks fell more after strong US durable goods orders.
In our bonus deep-dive interview, ANZ’s Head of Food, Beverage and Agri-Insight Michael Whitehead explains why sheep prices in Australia are slumping under $10 per head.
5 things to know
WTI rose 4% to US$94/bbl and Brent jumped 3% to almost US$97 after US oil inventories fell by 2.2m bbl/day to the lowest levels in more than a year.
US durable goods orders rose 0.2% in August, beating most forecasts. US 2-year and 10-year Treasury yields both rose six basis points to 5.14% and 4.64% respectively. That drove the S&P 500 down 0.9%. The A$ fell to 63.3 USc.
Australia’s annual inflation rate rose to 5.2% in August from 4.9% in July. ANZ’s Head of Australian Economics Adam Boyton says the RBA is unlikely to hike next week, but November may become more ‘live’ for a hike if labour market strength and inflation stickiness is evident through October.
The Bank of Thailand has hiked 25 basis points to 2.5%. ANZ’s Asia Economist, Krystal Tan now sees the BOT on hold to assess any further inflationary effects of fiscal policy and the return of tourists from China.
Australian consumer confidence has hit a roadblock of higher petrol prices and more rate hike talk, says ANZ’s Australia Economist Maddy Dunk.
Cheers
Bernard
PS: Look out tomorrow for fresh Australian retail sales data.
