US borrowing costs rise as higher oil prices and tariffs fire up inflation fears again. The UK has a new Chancellor. New Zealand’s inflation surges as petrol prices jump.
In our deep-dive interview, ANZ Senior Commodities Strategist Daniel Hynes analyses China’s response to the oil price spike.
5 things to know in 5 minutes:
Traders were focused on geopolitical developments overnight. ANZ Economist Henry Russell says a rising oil price, coupled with US President Donald Trump’s announcement of tariffs on Canada, sent US government bond yields up.
New Zealand’s annual CPI inflation surged a full percentage point to 4.1% in the second quarter, led by higher petrol prices. ANZ Senior Economist Miles Workman says the headline lift was expected and that the underlying picture shouldn’t move the dial much for the Reserve Bank.
Miles says while non-tradables inflation fell slightly and the headline measure was close to the Reserve Bank’s expectations, the RBNZ should continue to normalise monetary conditions.
ANZ-Roy Morgan Australian Consumer Confidence ticked up slightly last week to 75.6 points. ANZ Economist Sophia Angala says there were mixed results across the subindicies.
New UK Prime Minister Andy Burnham has appointed a Chancellor of the Exchequer. John Healy was Defence Minister in the previous administration. ANZ Economist Bansi Madhavani says gilt markets are watching for front-loaded budget restraint to signal policy credibility.
Cheers,
Bernard.
PS: Catch you tomorrow with a look ahead to Australia’s June jobs numbers and a rate decision in Indonesia.
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