Data/events recap - ANZ

Analysts at ANZ offered a data and event recap.

Key Quotes:

"US small business optimism remained elevated and job openings surged to a new record in March. NFIB rose to 104.8 with its Chief Economist noting “There is no question that small business is booming. Consumer spending, the new tax law, and lower regulatory barriers are all supporting the surge in optimism across all small business industry sectors.” JOLTS rose to a new record of 6.55m. The number of job openings is set to surpass the number of unemployed workers (6.36m in April) for the first time on record. The labour market continues to tighten."

"Powell said “Fed policy normalization has proceeded without disruption to financial markets, and market participants’ expectations for policy seem reasonably well aligned with policymakers’ expectations,” he said Tuesday. “Markets should not be surprised by our actions if the economy evolves in line with expectations”. Continue as you are!"

"March German activity data showed some signs of stabilising, although it didn't reverse all the February weakness. Exports rose 1.7% m/m following Feb's 3.1% m/m decline and industrial production rose 1.0% m/m vs Feb's 1.7% m/m decline. The data provides some solace that the German expansion is not persistently unravelling, trade uncertainty remains a major feature and confidence around that is fragile at present."

"The Australian budget delivered something for household’s wallets, a boost for health and saved some for a rainy day. An earlier than expected return to surplus (2020-21) has come at the “cost” of fewer giveaways than might have been the case ahead of an election. Our Australian colleagues expect the Government to gain favourable comment for banking some of the tax revenue gains with enough left over for a variety of measures, including personal income tax cuts.""