Oil prices have jumped, US Treasury yields and US stocks are down and the US dollar is up in a flight to safety after reports that Iran has launched missiles at Israel. The US labour market is showing signs of resilience, while rate cut expectations in Europe are boosted by lower inflation.
In our bonus Deep Dive interview, ANZ Economist Maddy Dunk discusses how sales in the lead up to Fathers’ Day in Australia helped retailers in August.
5 things to know:
Oil prices have jumped, US Treasury yields and stocks are down, and the US dollar index is up as Iran launches a missile attack on Israel. Earlier, ANZ Head of G3 Economics Brian Martin says data showed the US jobs market remains resilient.
ECB rate cut expectations were boosted as September inflation rose 1.8% from a year ago, which was the first time below the ECB’s 2% target since April 2021. Brian says the key news was core CPI of 2.7% already under the ECB’s recent forecast
Australian building approvals fell 6.1% in August, driven by a 16% fall in unit consents, which include apartments. ANZ Economist Maddy Dunk says this is something that has caught the attention of the RBA recently.
Indonesia’s annual inflation eased more-than-expected to 1.84% in September due to lower food prices, although ANZ Economist Krystal Tan says core CPI at 2.09% was stronger than expected.
Japan’s Tankan business survey was more positive than expected in September. ANZ FX Analyst Felix Ryan says the inflation expectation measure - at 2.2% annually in five years’ time - is closely watched by the Bank of Japan, which has a 2% inflation target.
Cheers
Bernard
PS: Catch you tomorrow with more on that escalating conflict in the Middle East.
