Oil falls below US$70 a barrel and stocks rise as traders assess Iran’s retaliatory attack on a US base in Qatar for signs of de-escalation. US PMI data shows ongoing expansion in June. Another Fed Governor backs a July rate cut. Singapore’s inflation falls again.
In our deep dive interview, ANZ Head of Asia Research Khoon Goh looks at how Singapore’s economy has come through tariff-related uncertainty, and how well-placed it is to handle potentially higher oil prices.
5 things to know in 5 minutes:
Oil fell over 5% to below US$70 a barrel, while stocks rose, as traders assessed a retaliatory attack by Iran on a US base in Qatar for signs of de-escalation in the Middle East. In the US, June PMI data showed ongoing expansion in activity, although at a slower pace, says ANZ Head of G3 Economics Brian Martin.
A second US Fed Governor - Michelle Bowman - has suggested a July rate cut is possible, following Chris Waller’s comments on Friday. Brian says the views are predicated very much on inflation readings remaining soft.
Singapore’s annual core inflation measure was up 0.6% annually in May, compared to April’s 0.7%. ANZ Head of Asia Research Khoon Goh says the process of inflation falling remains on track.
China kept key loan prime lending rates unchanged on Friday, in line with expectations. ANZ Senior China Strategist Zhaopeng Xing says Chinese growth remains steady at the moment, but rate cuts are in the wings.
Japan’s June PMI showed its manufacturing sector returned to expansion, while services activity also grew at a four-month high. Meanwhile, inflation data on Friday showed the headline CPI up 3.5% annually in May, down slightly from 3.6% in April. ANZ FX Analyst Felix Ryan says firms are passing on higher costs.
Cheers,
Alex (standing in for Bernard).
PS: Catch you tomorrow with how US consumer confidence has been tracking.
