Global stocks and bond yields fall sharply again after the United States imposes tariffs on Canada, Mexico and China, who retaliate with moves of their own. Australia’s Q4 GDP is set for an export boost, while green shoots emerge in New Zealand’s housing market.
In our bonus deep dive interview, ANZ Senior China Strategist Zhaopeng Xing outlines what to expect from China’s National People’s Congress this week.
5 things to know in 5 minutes:
Global stocks fell sharply again overnight after the US confirmed 25% tariffs on imports from Canada and Mexico and an additional 10% tariff on Chinese goods. In response, China set a 15% tariff on US food imports, which may benefit Australia and New Zealand exporters, says ANZ Economist Vicky Xiao Zhao.
Australia GDP data today is expected to show growth firmed in Q4. ANZ Research forecasts a quarterly lift of 0.6%, from a 0.3% lift in Q3. Senior Economist Adelaide Timbrell says positive net exports bolstered the forecast.
ANZ’s Roy Morgan Australian Consumer Confidence survey showed a dip of 2.1 points to 87.7 last week. But ANZ Economist Sophia Angala says confidence is still up 2.6 points since the RBA’s February cash rate cut.
Australian retail sales rose 0.3% in January, following a fall of 0.1% in December. Sophia says household goods spending has strengthened in recent months.
New Zealand building consents rose a seasonally adjusted 2.6% in January from December. ANZ Senior Economist Miles Workman says an ongoing recovery is expected, but the housing market isn’t set to take off.
Cheers,
Bernard
PS: Catch you tomorrow with analysis of what Australian GDP data today could mean for RBA rate cuts.
