US software stocks dive on new AI fears. Tariff uncertainty isn’t helping. Australian headline CPI likely fell a bit in January, but core inflation is still humming. And New Zealand’s retail sales rose in the December quarter.
And then in our deep-dive interview, ANZ’s Senior Commodities Strategist Daniel Hynes talks about why oil markets are on tenterhooks.
5 things to know in 5 minutes:
US software stocks are sliding after an alarming research report on AI questioned their viability. Tariff uncertainty didn’t help either, although markets in Hong Kong and India rose on hopes China and India might get better deals. But overall, markets have taken the latest tariff news in their stride, says ANZ Economist Henry Russell.
Australian inflation data for the month of January due out tomorrow is expected to show a 0.1% fall in the headline CPI for the month, but a 0.3% rise in the more important trimmed mean measure, says ANZ Australia Senior Economist Adelaide Timbrell.
Singapore’s headline inflation rate in January was 1.4% from a year ago, up from 1.2% in December. That was in line with forecasts, but ANZ Head of Asia Research Khoon Goh says the surprise was a fall in the core measure of annual inflation to 1% from 1.2%, and well below forecasts for a rise to 1.5%. Khoon says lower services related inflation was the key driver.
The New Zealand’s economy first piece of data for December quarter GDP showed a 0.9% rise in retail spending volumes, which was faster than forecasts for growth of around 0.7%, says ANZ Senior Economist Matt Galt.
The Kiwi dollar dropped last week after the RBNZ delivered a slightly more dovish than expected hold to its official cash rate, but ANZ Head of FX Research Mahjabeen Zaman sees longer term strength for the Kiwi.
Cheers,
Bernard.
PS: Catch you tomorrow with the latest on Australian consumer confidence.
