China’s industrial profit growth has slowed sharply, increasing expectations for more stimulus.
In part one of our bonus deep-dive interview, ANZ Australia Economist Blair Chapman has come up with a better measure of how tight the labour market is: FTE-pop.
5 things to know
Global markets were mixed overnight. The US 10-year Treasury yield fell five basis points to 4.42% by 5am Sydney/Melbourne time. The A$ was firm at 65.91 USc, as was the NZ$ 60.83 USc. Gold rose to US$2,010.35 an ounce.
China’s Industrial Profit growth slowed sharply to 2.7% in October from a year ago. ANZ China Senior Strategist ZhaoPeng Xing cites lower oil prices.
ZhaoPeng sees more help from China’s authorities on both the supply and demand sides of the property market.
ANZ Australia Senior Economist Catherine Birch will be watching travel prices closely in tomorrow’s CPI figures for October.
Australian retail sales volume figures for October later today are expected to show a 0.5% rise, which is slower than the previous month.
Cheers
Bernard
PS: Look out tomorrow for part two of our deep dive interview with ANZ Australia Economist Blair Chapman, where he maps out the sweet spot for FTE-pop, and whether Australia’s economy is still running so hot that the RBA has to hike again.
