New Zealand Morning Focus

ANZ's daily update highlights a significant downturn in European PMIs, arguing that the rate hike cycle for the BoE and ECB is likely over. Risk sentiment remains sensitive to oscillating headlines regarding US-Iran nuclear negotiations.

Key Takeaways

• 1.S&P Global May composite PMIs for the UK and Euro area deteriorated sharply, signaling economic contraction risks and potentially ending the rate hike cycle for the BoE and ECB.
• 2.Progress in US-Iran negotiations initially supported risk sentiment, though tensions remain regarding uranium enrichment and proposed Strait of Hormuz tolls.
• 3.ANZ expects Q1 NZ retail trade data to show a 1.2% q/q increase in sales volumes, significantly higher than the 0.5% consensus expectation.

Table of Contents

• Highlights
• Data and events today
• Financial markets
• Global markets overview
• Key data and events
• Key themes and views
• Important Notice

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