While stocks ended pretty much flat, the US$ suffered another selloff on Friday after the slightly weaker than expected inflation data. The CPI only rose by 0.1% mm in July, below expectation of 0.2% mm. On an annual basis, the headline CPI climbed to 1.7% yy, up from 1.6% yy but also missed expectation of 1.8% yy, while the Core CPI rose 0.1% mm, below expectation of 0.2%. The other major focus remained N Korea, with traders unwilling to take on risk positions ahead of the weekend, especially after Donald trump tweeted that “military solutions are now fully in place, locked and loaded, should North Korea act unwisely”. Stock markets were choppy, the metals remained firm, while WTI was under some mild downside pressure.
The coming week has plenty of data spread pretty much throughout the week although much of it is secondary and it would appear that most of the focus is going to be on the escalation of insults, or worse, between the US and North Korea. The key economic features will be the release of the Minutes from the recent meetings of the FOMC, ECB and RBA, while other key points of focus will be the China Retail Sales (Mon), the RBA Minutes, UK CPI and US Retail Sales (Tue), EU Q2 GDP (provisional) and FOMC Minutes (Wed), Australian Unemployment, EU CPI, Trade Balance and ECB Minutes (Thur). It would seem that Messrs. Trump and Jung-un are set to steal all the headlines and that risk avoidance will be the name of the game again.
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|INDICES / COMMODITIES|
|ASX SPI: 5638|