US bond yields fell sharply this morning and US stocks are up on hopes the Fed won’t have to hike again, largely due to weak jobs and consumer confidence data.
In part two of a bonus deep-dive interview, ANZ’s Senior Rates Strategist Jack Chambers explains why any RBA acceleration of its Quantitative Tightening won’t mirror the loosening effect of its Quantitative Easing.
5 things to know
US bond yields fell 10 basis points and stocks rallied 1-2% after JOLTS and US consumer confidence data was softer than forecast. ANZ’s Head of G3 Economics Brian Martin says markets now see less chance of a Fed hike.
US house prices rose again in June for the fifth month in a row. Brian says this indicates the rental parts of US inflation are likely to remain sticky.
ANZ’s Senior Economist Adelaide Timbrell is forecasting Australia’s inflation rate to rise from 5.4% to 5.5% in monthly data due later today.
Data out tomorrow is forecast to show India’s annual GDP growth rate rose to 8% in Q2 from 6.1% in Q2, thanks to strong investment spending.
ANZ’s India Economist Dhiraj Nim says the Reserve Bank of India is helping to stabilise the rupee, which is bolstering investment spending and limiting imported inflation.
Cheers
Bernard
PS: Look out tomorrow for commentary on Australian inflation.
