US jobs growth beat expectations overnight, but was offset by weaker services sector growth. Fed Chair Jerome Powell is in ‘wait and see’ mode on rate cuts this year. Gold is over US$2,300/oz this morning. Australian consumers expect higher inflation.
In our bonus deep dive interview, ANZ Economist Krystal Tan looks at the inflation and interest rate outlooks across Asia for the rest of 2024.
5 things to know:
ADP private sector job openings beat forecasts in March, but ISM services sector activity growth was softer than forecasts. ANZ Head of G3 Economics Brian Martin says markets watched on Fed Chair Jay Powell’s comments overnight that more data was needed before any rate cut this year.
Euro Area CPI inflation fell to 2.4% in the year to March from 2.6% and was just below the 2.5% consensus. European stocks rose and bond yields fell on views that ECB rate cuts are coming, probably starting in June, says Brian.
Growth in China’s services sector accelerated in March, with the Caixin/S&P services PMI recording 52.7, up from 52.5 in February. ANZ Senior China Strategist Zhaopeng Xing says migrant workers returning to work lifted activity.
The ANZ-Roy Morgan survey found Australian consumer confidence was stuck at 1990s recession-level lows last week. ANZ Economist Maddy Dunk says the RBA will focus on the survey’s inflation expectation measure. It rose to a six-week high of 5.2%.
Gold is above US$2,300/oz at fresh record highs this morning. ANZ Senior Commodity Strategist Daniel Hynes cites prospects for Fed rate cuts this year, coupled with safe-haven demand because of geopolitical concerns.
Cheers
Bernard
PS: Catch you tomorrow with a look at why your Easter eggs cost so much more this year.
