Markets firm on easing US-China trade tensions. China’s deflation continues, as authorities set a stronger yuan fix. Australia’s job market numbers today will be closely watched by the RBA. And Singapore’s growth strengthens.
In our Deep-Dive interview, ANZ Economist Sophia Angala reviews which Australian states and territories are doing well, including during the trade and geopolitical disruption seen this year.
5 things to know in 5 minutes:
US markets firmed overnight on the back of strong corporate earnings and an easing in US-China trade tensions. In Japan, opposition parties have banded together to challenge the appointment of the new Prime Minister-in-waiting Sanae Takaichi, with negotiations set for the rest of the week. ANZ Head of FX Research Mahjabeen Zaman says the BoJ should hold rates through the uncertainty.
China’s headline CPI was down 0.3% in September from a year ago, slightly weaker than expected. Producer price deflation eased to a 2.3% annual fall from 2.9% in August. ANZ Senior China Strategist Zhaopeng Xing says the ongoing deflation is not likely to trigger a monetary policy response.
Australia’s September jobs report should see modest employment growth of 10,000 and the unemployment rate ticking up to 4.3%. ANZ Economist Aaron Luk says there are signs the labour market is easing, but it is still strong.
Chinese authorities yesterday set a stronger fix for the yuan, above 7.1 to the US dollar. ANZ Head of Asia Research Khoon Goh says the move shows the People’s Bank of China is comfortable with the yuan appreciating.
Singapore’s third quarter economic growth of 2.9% year-on-year was much stronger than the market expected. Meanwhile, the Monetary Authority of Singapore has kept monetary policy settings unchanged. Khoon says it looks like the MAS will be on hold until at least April next year.
Cheers,
Bernard.
PS: Catch you tomorrow with what Australia’s September jobs report could mean for the RBA.
