US stocks and rate cut expectations retreat as January inflation comes in hotter than expected - just one rate cut is now priced for this year. New Zealand trucks got moving last month, but a full recovery in economic activity is yet to take hold.
In our bonus deep dive interview, ANZ Economist Krystal Tan reviews which Asian economies are most at risk from US President Donald Trump’s latest tariff proclamations.
5 things to know in 5 minutes:
A headline US CPI rate of 0.5% in the month beat the consensus forecast for 0.3%, while core inflation of 0.4% was above the 0.3% expected. ANZ Economist Bansi Madhavani says the data was punchy.
Bansi says US traders pulled back FOMC rate cut expectations to just one later this year, with uncertainty about the impact tariffs will have on inflation also a factor.
New Zealand heavy traffic movements jumped 4% in January, a positive sign after a tough 2024, says ANZ New Zealand Chief Economist Sharon Zollner.
Sharon says a per-capita view of New Zealand’s economic situation takes any shine off - for now.
UK December GDP data tonight will be closely watched by edgy bond markets. Bansi is forecasting a monthly rate of 0.1%, which would see fourth quarter growth actually turn negative, after a flat Q3.
Cheers,
Bernard
PS: Catch you tomorrow with a rate review in the Philippines amid all that trade and tariff uncertainty.
