Australasia

Even though the LME indices are very similar to what they were for our Mirror publication in May, the market mood is more subdued. Many of Oceania’s offshore trading markets will close for summer breaks in the coming days and weeks, making the market quieter.

Over this side of the world, we are in the midst of winter, which traditionally denotes a quieter market, and it is a little more so at present when compared to last year’s corresponding period. Domestic consumers are still buying but the sentiment seems, as mentioned, more subdued.

The Reserve Bank of New Zealand has left the official cash rate unchanged at 5.5% for the eighth consecutive time. However, with slowing inflation, a long-awaited interest rate cut is looking more likely later this year, according to several economists.

Australia’s Reserve Bank has also left the official cash rate unchanged, at 4.35% in this case. Market expectations are also building of a rate cut soon in this market.