Daily Brief - 15 May 2024

WeGovy back in full supply across Denmark

Novo Nordisk has confirmed that Wegovy, a popular weight-loss medication, is now fully stocked across Denmark. There had been worries about shortages due to high demand, especially for the 1 mg and 0.5 mg doses.

Wegovy, which is also used to treat type 2 diabetes, is taken weekly. With stocks now replenished, people in Denmark can continue their weight management plans without interruption.

This swift resolution of the stock issues not only keeps the product flowing but also boosts confidence in Novo Nordisk's ability to handle supply challenges.

Tokyo bond yields fall as US economic data looms

Tokyo saw a dip in Japanese government bond (JGB) yields following a decision by the Bank of Japan to reduce its bond offerings. This change comes as the financial world waits for the upcoming US Consumer Price Index data, which could influence global markets.

The Bank of Japan's move suggests a cautious approach to tightening monetary policy, possibly indicating higher borrowing costs soon. At the same time, the weakening yen adds pressure by increasing the cost of imports.

These shifts in Japan and the anticipated US data highlight the interlinked nature of global economies, making it a critical time for investors worldwide.

Aussie and Kiwi currencies climb after positive news from Beijing

The Australian and New Zealand dollars have recently hit new highs, driven by uplifting economic developments from Beijing and stable interest rates. The Australian dollar soared to $0.6651, approaching a significant ten-year resistance level, while the New Zealand dollar reached $0.6057.

This rise is backed by Beijing’s new measures to revive its property market, boosting investor confidence across the region. Despite increased bond issuance in Australia, local bond markets remain stable, suggesting continued investor trust in Aussie financial instruments.

With the government's strategies to manage inflation and encourage spending, the economic outlook in Australasia appears promising.