Global Markets:
- Asian stock markets: Nikkei up 1.00 %, Shanghai Composite down 0.05 %, Hang Seng lost 0.20 %, ASX rose 0.80 %
- Commodities: Gold at $1092 (-0.10 %), Silver at $14.72 (-0.15 %), WTI Oil at $48.90 (+0.15 %), Brent Oil at $53.65 (+0.20 %)
- Rates: US 10 year yield at 2.32, UK 10 year yield at 1.98, German 10 year yield at 0.72
News & Data:
- Australia Building Approvals -8.2 %, Expected: -0.8 %, Previous: 2.3 %
- Australia Export Price Index -4.4 % q/q, Expected: -4.0 %, Previous: -0.8 %
- Japan Industrial Production 0.8 % m/m, Expected: 0.3 %, Previous: -2.1 %
- New Zealand Building Consents -4.1 % m/m, Expected: 2.5 %, Previous: 0.0 %
- BoJ’s Ishida: Sees Inflation Accelerating Towards 2% Goal As Underlying Price Trend Steadily Improves — BBG
- BoJ’s Ishida: Must watch for financial system risks due to QQE
FOMC Meeting:
- Fed: Sees progress on jobs but not inflation
- Fed: Retains reasonably confident guidance on inflation, wants some further labor improvement
- Fed: Economic activity has been expanding moderately in recent months
- Fed: Assessment of inflation little changed from June statement
- Fed: Voted 10-0 for keeping Fed Funds unchanged
- Fed: Fed Decision Unanimous for 5th consecutive meeting
Markets Update:
The US Dollar gained after the FOMC statement was released. While there weren’t many changes from the June statement, market participants interpreted the comment from Fed officials that „some further labor improvement needed“ as hawkish. The key word here is „some“, which should signal that we are moving closer to the first rate hike by the Fed. Most major currencies fell vs the USD overnight, only the Aussie Dollar proved resilient. The worst performing currency was the New Zealand Dollar, which declined 0.50 % after worse than expected Building Consents data. NZD/USD fell from a high of 0.6720 post-FOMC to a low of 0.6620 in Asia.
Upcoming Events:
- 08:00 BST – Spanish GDP
- 08:00 BST – Spanish CPI
- 08:30 BST – Swedish GDP
- 08:55 BST – German Unemployment Rate
- 10:00 BST – Euro Zone Consumer Confidence
- 13:00 BST – German CPI
- 13:30 BST – US GDP
- 13:30 BST – US Initial Jobless Claims
