US stocks are trading down ahead of chipmaker Nvidia’s results later this morning. There’s support for the ECB to cut in September. Australian inflation figures are being clouded by electricity rebates, while house building remains soft. Jobs fell in New Zealand for a fourth month running.
In our bonus deep dive interview, ANZ Chief Economist for Greater China Raymond Yeung explains why there’s been record high outflows of capital from China in recent quarters.
5 things to know:
European money supply growth of 2.3% in July vs a year ago was below market expectations and negative in real terms, which ANZ Head of G3 Economics Brian Martin says supports the chances the ECB will cut again in September.
Australia’s partial CPI indicator for July rose 3.5% from a year ago, slightly above market expectations, but was down from 3.8% in June. ANZ Senior Economist Catherine Birch says the drop was caused by temporary electricity price rebates from the federal and state governments, which skewed the headline figure.
Catherine says the key data point to watch over the next year is trimmed mean inflation. That came in at 3.8% after spiking to 4.4% back in May.
Australian construction activity rose 0.1% in July and 1.2% annually. ANZ Head of Australian Economics Adam Boyton says big engineering projects, particularly public sector ones, look to be hitting capacity, and house building remains soft.
NZ jobs fell 0.1% in July from June, extending the falls to four consecutive months. ANZ Senior Economist Miles Workman says the data shows previous monetary tightening by the Reserve Bank of New Zealand is working.
Cheers
Bernard
PS: Catch you tomorrow with a look ahead to the US inflation data watched most closely by the Fed.
