US stocks and more risk-sensitive currencies weakened ahead of President Trump’s ‘Liberation Day’ of tariff announcements. Gold jumps to US$3,160/oz. China’s factories brace for tariffs too. Australia’s bank lending growth is steady.
In our bonus deep dive interview, Greater China Economist Vicky Xiao Zhou analyses the prospects for a second Plaza Accord-style deal on semiconductors between Taiwan and the United States, similar to a US-Japan deal in 1986.
5 things to know in 5 minutes:
Gold jumped another 1.4% overnight to a fresh record high of 3,160/oz. ANZ Commodity Strategist Soni Kumari explains the move.
Soni says flows of retail investor and pension fund money into ETFs are also a factor in gold’s rise.
Australian private sector credit growth in February of 0.5% was steady, perhaps surprising given the RBA started cutting rates that month, says ANZ Australia Economist Maddy Dunk.
China’s official PMIs survey found expansion in March, which was slightly above expectations. But ANZ Senior China Strategist Zhaopeng Xing says Trump’s tariffs are having an effect under the surface.
ANZ New Zealand’s Business Outlook survey for March has found businesses aren’t that worried about global tariff action, says ANZ New Zealand Chief Economist Sharon Zollner.
Cheers,
Bernard
PS: Catch you tomorrow with whatever detail we can get on tariffs from Trump on his big tariff announcement day, which he has described as ‘Liberation Day’.
