Oil prices fell a further 2% overnight to well under US$90/bbl after European PMI surveys showed a deeper contraction in factory activity and the IEA forecast oil demand falling by 2030 for the first time.
In our bonus deep-dive interview, ANZ’s Head of G3 Economics Brian Martin explains why the ECB is likely to hold on Thursday night for the first time in 11 meetings.
5 things to know
Brent crude fell more than 2% overnight to US$88.75/bbl after European PMI surveys showed factories there contracting faster in October. The IEA also forecast falling oil demand by 2030 for the first time.
Global stock and bond markets were volatile again overnight. The US 10-year Treasury yield was flat at 4.84% by 5 am Australian time. The S&P 500 was up 0.4%. The A$ was at 63.50 USc and the NZ$ at 58.40 USc.
New RBA Governor Michele Bullock gave her first speech in Sydney last night, saying the board “will not hesitate to raise the cash rate further if there is a material upward revision to the outlook for inflation”.
The Bank of Japan intervened again to buy Japanese Government bonds and to slow the rise in the 10-year yield. It closed off its highs at 0.842%.
Australian consumer confidence rose slightly last week, including around buying a major household item, says ANZ Australia Senior Economist Adelaide Timbrell.
Cheers
Bernard
PS: Look out tomorrow for the latest on key Australian inflation data today.
