US markets bed in expectations for a soft landing ahead of key price data, China’s core inflation is the lowest in three years, prompting calls for more stimulus, and Taiwan’s exports get an AI boost.
In our bonus deep dive interview, from the recent ANZ-sponsored AFR Asia summit, Australia’s Group of 8 universities CEO Vicki Thomson outlines the challenges facing Australia’s education export sector.
5 things to know:
US stocks rose and Treasury yields were flat as traders wait on further clues from inflation data tomorrow for what the Federal Reserve might do with interest rates. ANZ Economist Bansi Madhavani says expectations for a 25 bps cut are fully priced in, with a 30% chance of a 50 bps cut.
Supporting the soft landing view, ANZ Senior Economist Tom Kenny says last week’s US labour market data - while weaker in some areas - did contain some positive points.
China’s inflation in the year to August was below expectations at 0.6%, while core inflation at 0.3% was its lowest in three years. This again prompted calls for more stimulus. ANZ Senior China Strategist Zhaopeng Xing says action is needed on both the demand and supply sides of the economy.
Today in Australia, NAB’s Business Survey will show if the Stage 3 tax cuts and other cost-of-living measures are supporting business confidence. ANZ Economist Maddy Dunk says cost and price growth indicators are also important.
Robust demand for semiconductors and other AI-linked technology drove Taiwan’s exports up 16.8% from a year ago in August. Bansi says the outlook remains positive.
Cheers
Bernard
PS: Catch you tomorrow with a preview of key US inflation data and a review of today’s Australian business figures.
