US stocks and US bond yields are down sharply this morning after Donald Trump accepted the US economy was slowing. Oil prices keep falling on global demand and supply fears. The euro is surging on hopes for bigger European investment spending.
In our bonus deep dive interview, ANZ Senior Commodities Strategist
looks at the surprising performance of US shale oil producers and how they might respond to lower prices in a ‘drill, baby, drill’ era. (See more below)5 things to know in 5 minutes:
The Nasdaq fell 4% and the S&P 500 fell 2.6% on renewed fears about a US recession after Donald Trump acknowledged an economic slowdown was possible in a “period of transition” says ANZ Economist Bansi Madhavani.
The euro is surging vs the US dollar on hopes for big European investment spending, Bansi says.
Oil prices are falling again after fresh talk Russia could restart oil exports to the West and a surprise increase in OPEC oil output, says Daniel.
Daniel says markets had expected Saudi Arabia to delay production hikes for a fourth time, but was surprised when it went ahead with higher output.
ANZ Research expects Australia’s infrastructure pipeline to grow almost 50% on average over the next five years, says ANZ Senior Economist Adelaide Timbrell.
Cheers,
Bernard
PS: Catch you tomorrow with the latest on Australian business confidence figures out today.
