US markets fall on tech valuation concerns. The Reserve Bank of New Zealand cuts and signals more to come, so the NZ dollar falls over 1%. Bank Indonesia also cuts to support growth.
In our Deep Dive interview, ANZ New Zealand Chief Economist Sharon Zollner dissects the RBNZ’s latest forecasts after a dovish cut.
5 things to know in 5 minutes:
US stock markets were again led lower by big tech companies overnight, as a lack of key US data saw traders focus on valuation concerns. Meanwhile, over the Atlantic, UK inflation accelerated more than expected in July to 3.8% annually. ANZ Economist Bansi Madhavani says services inflation of 5% led the rise.
The Reserve Bank of New Zealand cut its official cash rate by 25 basis points to 3% yesterday, as expected. ANZ New Zealand Chief Economist Sharon Zollner says it is now also picking a lower OCR trough of 2.5%.
China kept its key 1- and 5-year loan prime rates on hold yesterday. ANZ Senior China Strategist Zhaopeng Xing says there could be cuts later this year.
Bank Indonesia surprised markets with a back-to-back 25 basis point cut in its headline rate yesterday to 5%. ANZ Economist Krystal Tan says the move came as the central bank raised its growth forecast.
Taiwan’s exports were up 15.2% in July from a year ago, boosted by demand from the US. Bansi says strong demand for semi-conductors is keeping the order book strong.
Cheers,
Bernard.
PS: Catch you tomorrow with analysis of the latest FOMC meeting minutes, ahead of Fed Chair Jerome Powell’s Jackson Hole speech on Friday.
