US stocks are dragged down by big tech names. European rate cut bets move further towards 50 basis points in December. Canada cuts rates by 50 basis points, and Singapore’s inflation is higher than expected, but provides enough for policy easing.
In our bonus Deep Dive interview, ANZ Chief Economist Richard Yetsenga was in China during the recent stimulus briefings and gives us his take on what the domestic economy there is facing.
5 things to know:
US stocks were dragged down overnight by tech names and retreating rate cut bets. Canada cut rates 50 bps, while bets on a 50 basis point cut by the ECB in December are on the rise. ANZ Economist Bansi Madhavani says while the market is debating the size of the next ECB cut, what matters more broadly is how much rates will be cut all up through the easing cycle.
Gold hit another fresh high, although was down slightly in later trade. ANZ Senior Commodities Strategist Daniel Hynes says demand for gold had been rising as the Fed commenced its rate cut cycle, although that driver has weakened recently as rate cut expectations were pulled back.
Singapore’s headline inflation came in slightly hotter than expected at 2% year-on-year, with core inflation at 2.8% also beating the market forecast. ANZ Chief Economist for India and Southeast Asia Sanjay Mathur says the Monetary Authority of Singapore’s commentary after the release indicates it should still be able to ease policy in early 2025.
South Korea releases Q3 GDP data today. ANZ Economist Krystal Tan is expecting a modest 0.3% quarterly expansion, and 1.8% growth year-on-year. She says the recent Bank of Korea rate cut will help lift growth from this level at the margin, but that more easing is required.
Malaysia’s headline inflation is expected to tick up to 2% in September from 1.9% in August. ANZ Economist Arindam Chakraborty says the rise is set to be led by transport, recreation, health and education prices.
Cheers
Bernard
PS: Catch you tomorrow with more from Richard on the economic challenges and opportunities facing China and India.