US inflation met forecasts. Markets now see a Fed rate cut next week as a sure thing. Japanese producer price inflation pressure builds for BoJ. Soft NZ data points to a triple dip recession. Australian jobs growth is seen keeping the RBA on its toes.
In our bonus deep-dive interview, ANZ Commodity Strategist Soni Kumari says the global aluminium market faces a number of challenges over 2025.
5 things to know in 5 minutes:
US stocks rose another 1% and bond yields fell few basis points after US CPI inflation of 0.3% in November met expectations. ANZ Head of G3 Economics Brian Martin says the data reassured markets about the rate cut, which is now 96.5% priced in by traders.
The Reserve Bank of Australia will be closely watching the final set of Australian jobs market figures for the year today, after softening its stance on inflation this week. ANZ Head of Australian Economics Adam Boyton sees jobs growth of 25,000 in November and the unemployment rate to staying tight at 4.1%.
Japanese producer price inflation for goods rose at its fastest pace in 16 months in November. ANZ FX Analyst Felix Ryan says that supports the Bank of Japan’s desire for inflation, but it wants to see services inflation too.
New Zealand traffic movements through November indicate the soft activity in Q3 might be passing into the final quarter of the year, says ANZ New Zealand Chief Economist Sharon Zollner.
Q3 manufacturing activity in New Zealand was also soft, falling 1.2%. ANZ Economist Henry Russell says high wholesale electricity prices led to business closures and production limits in the quarter.
Cheers
Bernard
PS: Catch you tomorrow with what Australia’s November jobs report could mean for the RBA.
