Global stocks rally on growing hopes the Fed will cut next month. Donald Trump threatens even higher tariffs on India, blaming its buying of Russian oil. And Australian house prices are rising at an annualised rate of 7.4%.
In our deep dive interview, ANZ Economist Vicky Xiao Zhou navigates the ins and outs of China’s still unresolved trade negotiations with the US.
5 things to know in 5 minutes:
US and European stocks rose 1-2% overnight on growing hopes the Fed will cut interest rates next month. Also, Donald Trump threatened overnight to raise tariffs on India beyond the 25% announced on Friday. He blamed India’s ongoing buying of Russian oil.
Australian house prices rose 0.6% in July, the third consecutive 0.6% rise. ANZ Australia Economist Maddy Dunk says the market’s momentum is continuing after bouncing in February when the Reserve Bank of Australia started cutting rates again.
Maddy says the price growth has been strongest for the cheapest quartile of homes.
New Zealand is expected to report a rise in unemployment to 5.3% tomorrow and a 0.1% fall in jobs, says ANZ New Zealand Chief Economist Sharon Zollner.
New Zealand consumer inflation expectations have risen to over 5%. So might that force the Reserve Bank of New Zealand to keep rates on hold? Sharon thinks not, given high inflation of food and electricity prices may reduce spending and inflationary pressure elsewhere.
Cheers,
Bernard.
PS: Catch you tomorrow with a closer look at the risk of labour hoarding in New Zealand.
