Global bond markets sold off this morning after Fed official Christopher Waller cautioned against expectations of early and fast cuts in US interest rates.
In our bonus deep-dive interview, ANZ New Zealand Economist Andre Castaing shows how New Zealand had its worst per-capita recession in 15 years in 2023.
5 things to know
The US 10 year Treasury yield jumped to a one-month high after US Federal Reserve Board Governor Christopher Waller said the Fed should not rush to cut rates too much or too early this year. The Aussie dollar fell to 65.82 USc at 5am Sydney/Melbourne time from 66.60 USc yesterday, while the Kiwi dropped to 61.36 USc from 62.00 USc.
China’s Premier Li Qiang surprised markets overnight by announcing China’s GDP figures early in a speech at the World Economic Forum at Davos. GDP rose 5.2%. ANZ’s Chief Economist for Greater China Raymond Yeung says the market is looking ahead now into 2024.
New Zealand business confidence improved sharply in the NZIER’s December quarter QSBO, ANZ Economist Andre Castaing reports.
India’s core inflation rate has already fallen to the Reserve Bank of India’s target, says ANZ Economist in India Dhiraj Nim.
Markets will be focused tonight on US retail sales and Eurozone inflation for more direction on US and European interest rates.
Cheers
Bernard
PS: Look out tomorrow for reviews of US retail sales data and European inflation data due tonight..
