Market Overview
Key Points:
• Worldwide coronavirus cases surpass 400.040 million with over 5.778 million official deaths.
• New Zealand has 202 active cases of coronavirus with 14 people in hospital. The NZ border will reopen in stages from the 27th of this month in a 5-step plan of self-isolation for travellers to reduce the MIQ facilities.
• Federal Reserve poses rate hikes in March and May to curb rising inflation
• The potential of a war between Russia and Ukraine looks to have deteriorated, although Russia said they would be ready for war in the second week of Feb – we are in this window now
• ECB inflation risk post the ECB has been upwardly reviewed although medium term inflation is not expected to tick over 2.0%
• ANZ predicts the RBA to hike interest rates as early as June, CBA are still tipping an August hike
Major Announcements last week:
Australian Cash Rate unchanged at 0.10%
Canadian December m/m GDP prints at 0.6%
NZ Unemployment Rate ticks lower to 3.2% from 3.4%
Bank of England hike rates to 0.50% from 0.25%
US Unemployment Rate jumps from 3.9% to 4.0% in January
Canadian Unemployment Rate climbs to 6.5% in January from 5.9% in December