Oil prices slumped again overnight to three-month lows on concern about weakening demand from slowing US, European and Chinese economies.
In our bonus deep-dive interview, ANZ’s Head of G3 Economics Brian Martin explains why Europe is headed for recession.
5 things to know
Brent crude fell 3% to US$80/bbl by 5am AEST. It nudged below US$80 soon after that. ANZ Senior Commodities Strategist Daniel Hynes cites weak demand.
US Treasury yields fell on weaker inflation prospects. The US 10-year fell 3 bps to 4.57%. The commodity currencies, the Aussie and Kiwi dollars, fell too. The A$ was at 64.11 USc and the NZ$ was at 59.17c by 5am AEST. Stocks were mixed.
Exports from Taiwan fell 4.5% in October from a year ago, but ANZ Asia Senior Economist Bansi Madhavani still sees growth in Q4.
Israel’s war with Hamas in Gaza is affecting gas supplies more than oil, says Daniel Hynes.
The ECB may cut before the Fed next year, says Brian Martin.
Cheers
Bernard
Look out tomorrow for a deep dive interview with ANZ Australia’s Head of Economics Adam Boyton on how Australia’s NAIRU rate is falling.
