Latest Finance-Economy News
Global Markets Extend Strong April Rally
US equity markets closed April with S&P 500 up 10.42% and Nasdaq 100 up 15.64%, best since 2020, driven by solid tech and industrial earnings despite Middle East stalemate and high oil prices. Attention now shifts to April jobs report and further earnings to assess sustainability.
ASX 200 ended 2.17% higher after losses tied to earnings downgrades and RBA hike expectations.
RBA Expected to Hike Rates to 4.35% Tuesday
Reserve Bank of Australia likely to raise cash rate by 25bps in third consecutive hike due to sticky inflation above 2-3% target and capacity constraints from Middle East fuel prices. Markets price 74% odds of hike, positive for AUD; May policy statement to detail outlook.
Follows tight 5-4 decision in March to 4.10%.
US Jobs Report to Influence Fed Path
April US nonfarm payrolls expected at 63,000 jobs with steady unemployment; key for Fed as markets now price no cuts for 2026 amid inflation surge. Productivity and inflation expectations also in focus; Fed dissent noted last week on oil impacts.
Oil Fluctuates Amid Middle East Tensions
Oil prices volatile with mixed signals; Trump plans US guidance for ships through Hormuz strait as Iran tensions ease slightly. Chevron CEO warns global energy system under extreme stress; higher oil fueling inflation worldwide.
PCE inflation jumped 0.7% recently, largest since 2022 peak.
China PMIs Mixed: Manufacturing Expands, Services Contracts
China NBS non-manufacturing PMI fell to 49.4 in contraction, missing forecasts; manufacturing PMI rose to 52.2 above consensus. Trade data upcoming this week.
Impacts global sentiment amid broader Asia recovery signals.
Banxico Expected to Cut Rates to 6.50%
Mexico's central bank widely seen delivering back-to-back 25bps cut Thursday, but may signal high bar for further easing as real policy rate nears neutral. Swaps price one more cut then hikes, supporting MXN.
Part of Latin America data wave including Brazil PMI.
Norges Bank and RBNZ Tightening Ahead
Norges Bank to hike; RBNZ swaps imply first 25bps hike in July and 125bps total to 3.50% over year despite dipping inflation model. Risks of fewer hikes headwind for NZD.
Reflects global hike expectations beyond Fed.
Andorra Economy Outperforms with 3.9% Growth in 2025
IMF concludes Article IV: Andorra growth surprised at 3.9% driven by finance, real estate; inflation at 2.4% trending up, projected 2.1% growth in 2026. Large current account surplus; risks from Middle East war and trade tensions.
Prudent fiscal policy praised.
South Korea Manufacturing PMI Hits Highest Since Feb 2022
South Korea PMI rises sharply, signaling strong expansion. Markets open positively in Korea and Australia.
Aligns with Asia recovery themes including Japan-Australia ties.
OPEC+ Agrees Symbolic Quota Hike
OPEC+ approves minor quota increase as UAE promotes oil investments amid volatility. Ties into broader energy stress from Middle East conflict.
Impacts inflation and central bank decisions globally.
US PCE Inflation Surges on Oil, No Fed Cuts Priced for 2026
PCE rose 0.7% in one month, largest since 2022 peak due to higher oil; markets price no Fed cuts all year, shift from earlier expectations. Other banks like BOE, BOJ, ECB also face hike pricing.
Stocks buoyant on earnings despite bonds rising.
Australia Manufacturing PMI Strongest in Four Years
Manufacturing PMI at 54.5 in April, up from 52.3, with new orders and employment rising. Strongest in nearly four years amid RBA caution.