Global markets find some rare stability after Donald Trump’s temporary pivot on computer and phone imports. China’s exporters are stopping shipments anyway. Singapore eases monetary policy. New Zealand’s economic recovery appears to stall.
In the first part of a bonus Deep Dive interview with ANZ’s Senior Rates Strategist Jack Chambers, he talks about the US dollar’s reserve currency status — its exorbitant privilege.
5 things to know in 5 minutes:
Global markets were relatively stable and positive overnight in the wake of Donald Trump’s apparent tariff concessions on computer and phone imports. ANZ Group Chief Economist Richard Yetsenga says markets will eventually start ignoring the tariff noise, and just start looking at the results in the economic data.
ANZ’s Head of FX Strategy Mahjabeen Zaman says a range of usual correlations between asset prices have broken amid all the tariff drama.
China’s exports rose 12.4% in March as exporters raced to get their goods over the border before Donald Trump’s tariffs. ANZ China Economist Vicky Xiao Zhou says exports in April are already flagging.
The Monetary Authority of Singapore eased policy yesterday, although not quite as aggressively as expected, says ANZ’s Head of Asia Research Khoon Goh. He expects the MAS to have to ease again by the middle of the year.
BusinessNZ-BNZ surveys of manufacturers and services firms indicate New Zealand’s economic recovery may be stalling, says ANZ Economist Henry Russell.
Cheers,
Bernard
PS: Catch you tomorrow with part two of our deep-dive interview with Jack Chambers on just how important the US dollar, and its special relationship with the Australian dollar, is to Australia’s pension funds, which are collectively now the third largest private savings pool in the world.
