Market Overview
Key Points:
• Fonterra has revised down its milk solid price from $8.50 – $10.00 to $8.50 – $9.50
• US Recession fears ramp up
• Bank of Canada hikes 50 points overnight amid a dovish read
• China relaxes covid rules moving away from their zero covid policy for the first time, those with asymptomatic with mild symptoms can so home quarantine
• The RBI (Reserve Bank of India) hikes interest rate 35 points to 6.25%, the fifth time in 2022 the central bank has hiked. The RBI saying growth is still very strong at a time when the rest of the world is slow down
• Eurozone third quarter GDP +0.3% vs +0.2% q/q estimate
• A sharp economic downturn in Australia in 2023 is rapidly coming into play with GDP supporting prospects of higher inflation leading to higher interest rates
• The British Pound (GBP) has been the strongest currency in the month of December so far with the Canadian Dollar (CAD) the weakest performer.
Major Announcements last week:
- Australian CPI y/y 6.9% from 7.6%
- US prelim GDP q/q 2.9% vs 2.8%
- Canadian Unemployment Rate 5.1% vs 5.3% expected- down from 5.2%
- US Non-Farm Payroll prints 263,000 vs 200,000 predicted
- US Unemployment Rate remains unchanged at 3.7%