Ian Reynolds
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Overnight
Economic Indicators Released Overnight
A slew of economic data overnight:
- Solid employment report in Australia
- UK GDP slightly higher than expected
- EU steady GDP with higher industrial production
But all eyes were on US PPI and Retail Sales and how tariffs had impacted them. Results were lower than expected with the headline MoM PPI negative 0.5% an eye opener. Across both reports the numbers were weaker than expected with some analysts suggesting that margins were being squeezed so that price increases weren't passed on to consumers.
US PPI April 2025
Breaking
US set to cut capital requirements for banks, FT reports [Reuters]
Bonds
Australian 10 year yields have broken higher, against the expectation of lower rate. The newly re-elected Labour Government is set on applying unrealised capital gains tax on superannuation accounts with balances of more than A$3m. Although this would seem to only affect a few people, all Australian investment is in property, and therefore illiquid and indivisible. Plenty of HNWs looking to cash out to cover the tax bill.
Australian 10 Year Government Bond Yield Daily
Commodities
Huge COMEX physical bullion requests already this month suggest demand is still super high and that the current much-needed correction won't last long.
GOLD / USD Daily
Bitcoin
Sticking to that tight range below horizontal resistance despite poor price action yesterday.
BITCOIN / USD Daily
Foreign Exchange
With the USD curiously below the radar, USD / CHF has crept back into the stable band.
USD / CHF Daily
Interesting
Millions face collections on student loans after Trump policy shift [FT]
Economic Indicators Today
