To the scoreboard:
- Dow: 25,241.94 +197.65 (+0.79%)
- S&P500: 2,820.40 +13.42 (+0.48%)
- AUD/USD: 0.7419 +0.0039 (+0.53%)
- ASX SPI futures (September contracts): 6,216 (+16)
1. News yesterday that Chinese authorities were moving to shore up the economy gave rise to a positive tone on global markets overnight. Stocks in Shanghai capped their best three-day run in two years which fed into a 1% gain on European markets, with a more moderate bounce for US stocks.
2. The US dollar index traded flat against most pairs, but the Aussie was one of the best performers and is back above US74 cents this ahead of all-important inflation data this morning. China’s renminbi briefly dipped to a 13-month low before a small rebound.
3. It’s CPI day: Australian inflation data for the June quarter is out at 11:30am. It’s one of the most important releases on the calendar, and David Scutt’s 10-second guide has the full rundown. Both headline and core inflation are expected to rise by 0.5% for the quarter, leaving annual growth at 2.2% and 1.9% respectively.
4. Bitcoin held its gains above $US8,000 and continues to climb this morning, amid continued speculation about the introduction of a bitcoin exchange traded fund (ETF).
5. The China developments also gave commodity stocks a boost, and BHP’s London listing rose by more than 5% overnight. Iron ore markets are unusually quiet, but copper prices rallied by around 2%.
6. And US earnings season rolls on, as Harley Davidson topped expectations for a sixth straight quarter, but the company reiterated warnings that Trump’s tariffs could squeeze its margins. Google parent-company Alphabet hit a record high after crushing analyst expectations after the bell on Monday — here’s what Wall Street is saying about it.
And a look at the upcoming economic calendar:
- Australian CPI data for the June quarter.
- President Donald Trump meets with European Commission President Jean-Claude Juncker.
- Facebook, Amazon, and Twitter report earnings in the coming days.
- US new home sales numbers are out.
- Eurozone money supply data cross the wire.
Have a great day.
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