Markets took a breather overnight to refocus on US GDP and inflation data tomorrow night. Australian consumer confidence improves as tax cuts arrive. India delivers lower Budget deficit and Singaporean inflation is below forecasts.
In our bonus deep dive interview ANZ’s Senior Economist Blair Chapman analyses how Australia’s jobs market slowdown could accelerate.
5 things to know:
Markets largely took a breather overnight ahead of key earnings reports this morning and US GDP and price data due on Thursday night. ANZ Senior International Economist Tom Kenny says the data should add to confidence the Fed can start rate cuts in September.
ANZ Roy Morgan’s Australian Consumer Confidence Index jumped 5.9 points last week to a six-month high. It was the biggest rise since April 2021. ANZ Economist Maddy Dunk cites the arrival of stage 3 tax cuts.
India’s Government delivered its first Budget since June’s election yesterday. ANZ Economist Dhiraj Nim says this year’s deficit target was lowered from 5.1% to 4.9% of GDP due to a large dividend from the Reserve Bank of India..
Singapore’s annual inflation rate fell to 2.4% in June from 3.1% in May due to temporary factors, but core inflation of 2.9% was lower than the consensus for 3%. However, ANZ Head of Asia Research Khoon Goh says the MAS remains wary of still-strong wage inflation.
Malaysia releases June inflation data today. ANZ Economist Arindam Chakraborty expects the headline annual rate to rise to 2.1% from 2% in May, driven by food and beverage, utilities and transport inflation.
Cheers
Bernard
PS: Catch you tomorrow with key global PMI data.
