New Zealand’s retail trade volumes are stronger than expected. Global markets are mixed as traders debate the certainty of a Fed rate cut next month. And Singapore’s inflation is weaker than expected.
In part two of our Deep Dive interview, ANZ Senior Commodity Strategist Daniel Hynes details why Chinese investors are funding Indonesia’s aluminium expansion.
5 things to know in 5 minutes:
Markets were mixed overnight. Investors are still digesting Fed Chair Jerome Powell’s relatively dovish view that the Fed can start cutting rates again next month, as ANZ Group Chief Economist Richard Yetsenga explains.
New Zealand’s Reserve Bank pivoted last week from being on hold and worried about inflation, to cutting 25 basis points and being much more worried about slow growth, with two of the six decision-makers actually voting for a 50 basis point cut. ANZ’s New Zealand Chief Economist Sharon Zollner thinks that shift could flow through quickly into better confidence.
Singapore’s annual inflation rate in July fell unexpectedly to 0.6% from 0.8% in June. Core inflation also nudged lower to 0.5%, says ANZ’s Head of Asia Research Khoon Goh.
The Monetary Authority of Singapore is unlikely to ease in response, given inflation is expected to rebound from the end of this year, says Khoon.
New Zealand’s retail trade volumes rose 0.5% in the June quarter from the March quarter. Economists had expected a fall. ANZ Senior Economist Matt Galt pointed to strength in volumes in electronics and department stores, where lower prices boosted activity, although it was relatively widespread, with 10 out of 12 industries reporting growth.
Cheers,
Bernard.
PS: Catch you tomorrow with a deep-dive interview with ANZ Group Chief Economist Richard Yetsenga on how developed economies are now grappling with low birthrates and the prospect of falling populations relatively soon.
