US stocks and the US dollar rallied overnight on hopes Donald Trump will cut tariffs on China, and after he said he doesn’t want to fire the Fed’s chair. But business surveys in the United States and Europe show economic activity has already softened.
In our bonus Deep Dive interview, ANZ Economist Vicky Xiao Zhou analyses goods trade data to explain why Trump may be easing his tariff rhetoric in recent days.
5 things to know in 5 minutes:
US stocks rallied 2-3% and US bond yields were steady overnight after Trump said he wanted lower tariffs on China, and that he had no intention of removing Federal Reserve Chair Jerome Powell, says ANZ’s Head of G3 Economics Brian Martin.
Purchasing Manager (PMI) survey results out overnight for the United States and Europe confirm a sharp downturn in economic activity since Donald Trump’s ‘Liberation Day’ tariff shock on April 2, says Brian.
ANZ’s Roy Morgan Australian Consumer Confidence found a rise last week of 1.3 points to 85.5. ANZ Economist Sophia Angala says while global uncertainty is feeding through in the survey, it’s being offset by tax and cost of living relief at home.
Bank Indonesia held its key interest rate at 5.75% yesterday, as expected. ANZ Economist Krystal Tan says currency stability is the key focus for the central bank, with the rupiah under-performing others in the region.
Inflation in Malaysia and Singapore both came in lower than expected yesterday, setting up central banks in both countries for monetary policy easings in the coming months, says ANZ’s Head of Asia Research Khoon Goh.
Cheers,
Bernard
PS: Catch you next on Monday, April the 28th following the ANZAC Day public holiday on Friday in Australia and New Zealand.
