Donald Trump delays his 50% tariff on Europe, which boosts stocks there. But gold remains up near record highs on all the uncertainty. Singapore’s factory output rebounds, reducing the chances of a technical recession. And the RBNZ is expected to cut the OCR again tomorrow
In our deep-dive interview, ANZ’s Senior Commodities Strategist Daniel Hynes has taken a closer look at the aluminium market and finds supply issues are adding to the tension also building over rising trade barriers.
5 things to know in 5 minutes:
Gold prices rose 2% over the last four days to US$3,371/oz after Donald Trump’s latest threat to impose a 50% tariff on imports from Europe. His decision yesterday to delay the tariff saw gold give up only half a percent of those gains overnight. ANZ Commodities Strategist Soni Kumari explains why the latest trade drama is helping gold.
Soni says there’s more than just Trump’s trade uncertainty underneath demand for gold.
The Reserve Bank of New Zealand is expected to cut its Official Cash Rate again tomorrow by 25 bps to 3.25%, ANZ New Zealand Chief Economist Sharon Zollner says the chances for a bigger cut or no rate cut are slim.
Sharon says there has been a deterioration in confidence since the ‘Liberation Day’ tariff news, which the Reserve Bank may try to take account of.
Singapore’s factories reported a rebound in output in April, which may stave off a technical recession in the June quarter, says ANZ’s Head of Asia Research Khoon Goh.
Cheers,
Bernard
PS: Catch you tomorrow with a preview of Australian CPI inflation data for April due later in the day.
