Markets are mixed as traders analyse just how much escalation is possible in the conflict between Israel and Iran across the Middle East. There’s further strength in the US jobs market, and inflation in South Korea has fallen below the central bank’s target.
In our bonus Deep Dive interview, ANZ Chief Economist for Southeast Asia and India Sanjay Mathur outlines the prospects for Asian economies across the fourth quarter.
5 things to know:
Markets were mixed overnight as traders sought to determine whether and how the conflict between Iran and Israel might escalate further. ANZ Head of G3 Economics Brian Martin says at this point traders appear to have discounted the worst of the impact the conflict might have on financial markets.
Oil prices traded up about 2% overnight, but dropped back in later trade. ANZ Senior Commodities Strategist Daniel Hynes says moves haven’t been too significant in recent days, as traders think the current conflict may have only a limited impact on supply.
Daniel says OPEC has plenty of spare capacity if supply is severely disrupted.
US ADP private sector job hirings of 143,000 in September beat expectations. Brian says this bodes well for non-farm payrolls data on Friday, and adds to signs of a 25 basis point rate cut by the Federal Reserve in November.
South Korea inflation cooled more than expected in September. The annual rate of 1.6% was below the Bank of Korea’s 2% target for the first time since early 2021. ANZ Economist Krystal Tan says expectations for a rate cut next week are strengthening.
Cheers
Bernard
PS: Catch you tomorrow with more on whether US jobs market data this week is pointing to a 25 or 50 basis point cut from the Fed in November.
