5 in 5 with ANZ
5 in 5 with ANZ
Tuesday: Bitcoin surges on Trump trade
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Current time: 0:00 / Total time: -8:52
-8:52

Tuesday: Bitcoin surges on Trump trade

Bitcoin hits new record on Trump trade; Wobbles for Fed December rate cut bets; ECB policy makers eye monetary policy response to US trade policy; ANZ's Adam Boyton on Australia's care economy

The Trump trade surge continues: Bitcoin hits a new record high and the US dollar bounced another half-percent overnight. Expectations for another Fed rate cut in December grow more wobbly, and weary ECB policy makers suggest rate cuts could help ward off negative US trade moves.

In our bonus Deep Dive interview, ANZ’s Head of Australian Economics Adam Boyton analyses a surge in jobs in aged care and disabled care, which is lifting female workforce participation.

5 things to know:

  1. The Trump trade continued overnight. Bitcoin hit a new high above $84,000 and the US dollar stayed on its march upward. ANZ Economist Bansi Madhavani says the overhang of President-elect Trump’s win has been driving sentiment.

  2. Amid the market moves, questions are growing as to whether the US Federal Reserve will follow last week’s rate cut with another in December. Bansi says guidance from the Fed, including that it will be closely watching two inflation reports between now and December, has been murky.

  3. The positive US equities sentiment transferred to European stocks overnight - the broad Euro STOXX 600 index was up 1.1%. However, that’s amid growing concern about how the trading block can temper the negative effects of the new President’s trade policy. ECB member Yannis Stournaras said monetary policy will need to react.

  4. Unlike in Australia, In New Zealand, workforce participation has dropped a bit as unemployment has increased. ANZ New Zealand Chief Economist Sharon Zollner says that’s meant the labour market is slightly tighter than the RBNZ was forecasting.

  5. Sharon says that slightly tighter labour market, but without much extra wage pressure, is a factor reducing expectations for a really big rate cut by the RBNZ later this month.

Cheers

Bernard

PS: Catch you tomorrow with a look at the state of both Australian consumer and business confidence.

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5 in 5 with ANZ
5 in 5 with ANZ
A daily podcast hosted by Bernard Hickey that gives you the five things you need to know about the global economy and markets in under five minutes. Plus a deep dive into emerging trends and issues featuring ANZ's global team of experts.