The oil price slumps back towards US$80, and stocks rise, as traders bet on stockpiles being released. Australian consumers expect higher inflation due to the conflict. China’s chip exports and oil imports surge.
And then in our deep-dive interview, ANZ’s Head of Agribusiness Mark Bennett reviews the headwinds and tailwinds for Australia’s agriculture sectors as we head into Autumn.
5 things to know in 5 minutes:
The WTI oil price was down nearly 13% at US$82.59, while stocks rose overnight as traders reacted to news that the world’s major economies were looking to release oil stockpiles. Meanwhile, amid the conflict, central banks and markets are also having to keep an eye on regular data releases, including two key price reports this week in the US, says ANZ Head of FX Research Mahjabeen Zaman.
ANZ-Roy Morgan Australian Consumer Confidence slumped 3.7 points last week to its lowest since July 2023. ANZ Economist Sophia Angala says the 12-month ahead future financial conditions subindex hit its lowest level on record, as inflation expectations surged to their highest level since late 2022.
Australian business confidence turned negative in February, according to NAB’s survey, as RBA rate hikes took centre stage. But ANZ Senior Economist Adelaide Timbrell says there were some positive signals.
There was good news for New Zealand’s economy, with light and heavy traffic activity both posting increases in February. ANZ New Zealand Chief Economist Sharon Zollner says both sets of activity rose about 2.5% in the month.
China’s exports and imports both surged about 20% in the first two months of the year in annual terms - well above forecast. ANZ Economist Vicky Xiao Zhou says chip exports grew 72%, while oil imports also increased.
Cheers
Bernard.
PS: Catch you tomorrow with reaction to the US inflation data out tonight.
