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• Negative vibes. Another jump in energy prices & upward repricing in interest rates dampened risk sentiment. USD firmer. AUD & NZD underperform.• Macro news. Asia exposed to higher energy costs. Growth in Australia set to slow. US Fed looks to be in no hurry to cut again. AU jobs report out today.
Global Trends
The positive sentiment that ran through markets over recent days gave way overnight,...
The Federal Reserve left interest rates unchanged this afternoon and did little to acknowledge an Iran war-driven shift in the balance of risks facing the US economy in the accompanying statement, suggesting that officials could resist adopting a more hawkish posture in the near term. In the widely-expected decision, the Federal Open Market Committee voted by an 11-to-1 margin to maintain the target...
As markets had overwhelmingly anticipated, the Bank of Canada left its policy settings on hold this morning, and expressed concern over persistent weakness in the Canadian economy, suggesting that policymakers are more concerned about downside risks to growth than upside risks to inflation as the world economy faces yet another supply shock.
Officials led by Governor Tiff Macklem maintained the policy...
Financial markets are turning cautiously optimistic this morning as oil prices stabilise and investors position for a raft of central bank decisions. Several tankers registered to non-aligned countries crossed the Strait of Hormuz overnight, even as Iran continued its attacks on Israel and its Gulf neighbours, while Donald Trump said the US could end the war in the “very near future”*. West Texas Intermediate...
• Improved mood. Despite ongoing Middle East issues & high oil prices risk sentiment has improved. Softer USD & a RBA hike supports the AUD.• RBA hikes. Another 25bp rate rise delivered yesterday. Inflation pressures point to another move. Markets already pricing that in. Growth set to slow.
Global Trends
The market mood has picked up over the past couple of sessions, as illustrated by...
After being ‘strategically timid’ during its last tightening cycle the RBA looks to be taking fewer chances when it comes to its renewed battle against inflation with another 25bp rate hike announced today. This follows the rate rise delivered at the last meeting in February and lifts the cash rate back up to 4.1%, just 25bps off the ‘peak’ reached in the 2023/2024 inflation fight (chart...