US assets fell sharply overnight and gold surged on a renewed ‘sell America’ trade. Japanese bond yields jump. Australian consumer confidence drops as rate hikes are forecast. New Zealand’s services sector finally expands again.
In our Deep-Dive interview, ANZ’s Chief Economist for Greater China, Raymond Yeung, says China’s early and deep adoption of industrial robots and AI drove GDP up 5%, but without many new jobs.
5 things to know in 5 minutes:
US stocks fell overnight as traders assessed the growing risks around Donald Trump’s Greenland tariff threat. Markets were also hit by a surge in Japanese bond yields due to inflation worries from policies being pitched for February’s snap election. ANZ Economist Bansi Madhavani says volatility is back.
Australian consumers took a turn for the worse last week, with ANZ-Roy Morgan Australian consumer confidence dropping 5.2 points to 72.9. ANZ Economist Sophia Angala says that’s the sharpest weekly drop since the RBA started hiking rates in February 2023.
In New Zealand, a further sign the economy was strengthening heading into 2026. The performance of services index expanded in December for the first month since early 2024. ANZ Economist Matt Galt expects the economy to keep recovering.
Base metals experienced weakness last week as several regulatory issues saw investors turn away from recent exuberance. ANZ Commodities Strategist Soni Kumari says a move by Chinese authorities affected a range of metals.
Bank Indonesia is expected to hold rates at 4.75% in its first meeting of the year today. ANZ Economist Krystal Tan says a weakening currency is stopping the central bank from cutting.
Cheers,
Bernard.
Catch you tomorrow with a look at how India’s tightening bank liquidity may weigh on growth and corporate earnings there.
