A new round of US tariff letters include a 20% rate on the Philippines. There’s uncertainty in the copper market as traders wait for more detail on Trump’s 50% tariff talk. The Reserve Bank of New Zealand dovishly holds, while Malaysia pre-emptively cuts.
In our deep dive interview, as the scramble for tariff-trade deals heats up, ANZ Senior Commodities Strategist Daniel Hynes analyses how the LNG market is playing a role.
5 things to know in 5 minutes:
President Trump has released a new round of tariff letters, including a 20% rate for the Philippines - a top-50 trading partner of the US – up from 17% on Trump’s Liberation Day announcement. Meanwhile the copper market continues to reel from comments by Trump that he is considering a 50% tariff on imported copper products, says ANZ Senior Commodities Strategist Daniel Hynes.
The Reserve Bank of New Zealand held its official cash rate at 3.25% as expected yesterday. ANZ New Zealand Chief Economist Sharon Zollner says it was a dovish hold to give the rate setting committee more time to analyse inflation and expectations data.
Sharon says ANZ Research continues to expect three more rate cuts as underlying economic momentum softens in New Zealand.
Malaysia’s central bank reduced its policy rate by 25 basis points to 2.75% - the first cut in five years. ANZ Economist Arindam Chakraborty says it was a preemptive move to support growth amid the volatile global trade environment.
China’s producer prices fell 3.6% annually in June - the biggest drop in two years. Consumer prices rose 0.1% against expectations, following four months of declines. ANZ Senior China Strategist Zhaopeng Xing says an expected strong GDP print next week may push rate cuts further back in the year.
Cheers,
Bernard.
PS: Catch you tomorrow with analysis of how the US jobs market is performing as FOMC members weigh up whether to cut rates later this month.
