The ASX 200 is up 41 points in mid-morning trade after a mixed night. Most sectors higher. IT best, Materials worst. WMI cons sentiment. Big night with Powell and FOMC minutes. #ausbiz


  • Economic data – Westpac Consumer Confidence Index
  • Japanese data – PPI
  • Chinese data – Inflation Rate, PPI


  • UK data – Balance of Trade, GDP, Industrial Production, Manufacturing Production, Construction Output
  • US data – Wholesale Inventories
  • Fed Speak – Chairman Jay Powell will speak ahead of semiannual monetary policy testimony to the House Financial Services Committee


  • Banks – S&P has revised its outlook for the major Australian banks to “stable” from “negative”. This outlook change reflects S&P’s view that the Australian Prudential Regulation Authority (APRA) release on loss absorbing capacity, dated 9 July 2019, indicates that the Australian Government remains highly supportive of Australia’s systemically important banks and that this support is unlikely to diminish in the next two years




US EQUITIES – S&P500 +4 (+0.12%), Dow Jones -23 (-0.08%), NASDAQ +43 (+0.54%)

Main themes

  • Cautions ahead of Powell’s testimony before Congress.
  • 3M (-2.46%) after an analyst downgrade (RBC Capital Markets) to sector perform from outperform on worries over the macro economic environment and overhang from litigation.

EUROPEAN MARKETS – Mostly lower. STOXX600 -0.51%, UK FTSE -0.17%, German DAX -0.85%, French CAC -0.31%, Deutsche bank (-4.2%) after falling 5.4% yesterday. German chemical giant BASF (-3.32%) cut its outlook for Q2 and FY19. Danske Bank lowered its outlook for the year due to pressure on margins.


  • The USD is stronger at 97.50.
  • The Aussie dollar is lower at US69.30.

BONDS – -yr: -1 bp to 1.88%, 3-yr: +1 bp to 1.84%, 5-yr: +2 bps to 1.86%, 10-yr: +3 bps to 2.06%, 30-yr: +3 bps to 2.55%


  • Oil – WTI futures rose US5c to US$57.71 with no new developments.
  • Gold was down US$6.00 0.5% to US$1,392.50, mostly a stronger US dollar issue
  • Iron Ore – Commsec has iron ore up US$4.85 or 4.1% to US$122.60 a tonne,
  • LME metals – Mixed. Cu -1.04%, Ni +0.20%, Al +0.86%.


  • Economic data – June NFIB Small Business Optimism Index 103.3 (prior 105.0); May Job Openings and Labor Turnover Survey 7.323m (prior 7.372m)
  • US-China relations – The US approved the sale of $2.2bn worth of tanks, surface-to-air missiles, and other arms to Taiwan.
  • Japanese data – May Average Cash Earnings -0.2%yoy (expected -0.6%; last -0.3%) and Overtime Pay +0.8%yoy (last -1.1%). June Machine Tool Orders -38.0%yoy (last -27.3%).
  • Australia economic data – June NAB Business Confidence fell to 2 from 7, as expected.
  • ECB hurting – Germany’s CDU leader, Annegret Kramp-Karrenbauer, said that the ECB’s interest rate policy is causing issues for savers and that its duration should be curbed.
  • Brexit – UK Labour leader, Jeremy Corbyn, said that his party will call on the next prime minister to put the Brexit deal up for a referendum.
  • European data – Italian May Retail Sales -0.7% (expected 0.2%; last -0.3%) to be -1.8%yoy (expected 3.8%; last 4.2%).

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