Australia on track for a GDP-per-person recession as immigration remains the only thing in the way of a full-blown recession; Bloomberg reports that US and China are close to a trade deal to end tariffs; and 35 major retail chains have gone into bankruptcy in the US since 2016. Here’s what’s happening in markets.
What I’m reading
Australia faces a GDP-per-person recession
While the headline GDP numbers are expected to remain positive when GDP figures for Q4 are reported on Wednesday, on a per-capita basis, this could be the second quarter in a row of negative growth.
US-China trade deal could be close
Bloomberg reports that unnamed Chinese officials believe that an end may be in sight for the eight month-long trade war.
American retailers implode
35 major retailers have collapsed in the last three years in the YS, owing a minimum of $100m in liabilities each, with some owing up to $10B in liabilities.
Stocks to watch
- Metcash (MTS) released a strategy and trading update
Key market data
- ASX200: 6,192.70 (+0.38%)
- AUD/USD: 0.7100 (+0.25%)
- S&P 500: 2,803.69 (+0.69%)
- China A50: 12,879.60 (+2.91%)
- Australia 2-yr bond: 1.771 (+0.40%)
- Australia 10-yr bond: 2.197 (-0.05%)
- US 2-yr bond: 2.557 (+1.55%)
- US 10-yr bond: 2.759 (+1.55%)
- Gold (USD/oz): 1,294.45 (-0.37%)
- Copper (USD/lb): 2.926 (-0.24%)
- Brent Oil (USD/bbl): 65.07 (-1.45%)
- 62% Iron Ore (USD/t): 86.65 (+2.54%)
Upcoming releases and events
- The TD Securities Inflation Gauge (Feb), ANZ Job Advertisements (Feb), and Buildings Permits (Jan) are all released on this morning
- AiG Performance of Services Index for February is released tomorrow at 8:30am AEST
- RBA rate decision tomorrow at 2:30pm AEST
- Australian GDP for Q4 is released on Wednesday at 11:30am AEST.
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