US markets stabilise as US President Donald Trump says the US won’t take Greenland by force. Gold rises again though. Bank Indonesia holds to support its currency. And Australian jobs data today will give clues on the Reserve Bank of Australia’s next move.
In our Deep-Dive interview, ANZ’s Chief economist for Southeast Asia and India Sanjay Mathur explains what India’s tight bank liquidity could mean for growth and corporate earnings there.
5 things to know in 5 minutes:
Global equities stabilised somewhat overnight following comments from Donald Trump at Davos that the US would not take Greenland by force. ANZ Economist in London Henry Russell says the US President also did not repeat recent tariff threats against Europe.
Gold was trading up a further 1.3% at 4am Sydney/Melbourne time at $4,825 an ounce. ANZ Commodities Strategist Soni Kumari says gold is still an under-owned asset compared to equities and bonds, with upside risk from investors shifting from traditional assets into gold.
In Australia today, December monthly labour market data will give the RBA a glimpse at whether it’s meeting its employment mandate as it considers cutting, holding or raising rates. ANZ Economist Aaron Luk is forecasting employment growth of 20,000 in the month and the unemployment rate staying at 4.3%.
Card spending in New Zealand rose a seasonally adjusted 0.4% in December, to be up 3.9% from a year ago, according to ANZ card data. ANZ New Zealand Chief Economist Sharon Zollner says spending rose in most categories.
Bank Indonesia held its policy rate at 4.75% yesterday, citing currency stability as its top priority. ANZ Economist Krystal Tan says the central bank indicated it was prepared to take decisive action to support the currency.
Cheers,
Bernard.
Catch you tomorrow with a review of Australia’s December jobs data and what it could mean for the RBA.
