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v US’s NIFB small business survey rose
to 95.4 in July from 94.1 in June
v US’s non-farm productivity rebound in
the second quarter at 1.3%
v PBoC embark on a major reform of the
RMB, undertaking a one-off devaluation
v China's bank lending exceeded market
expectations in July by CNY1.48 trillion
v Singapore’s Ministry of Trade and
Industry narrows the GDP growth forecast for 2015 from 2.0% to 2.5%
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·
US –
NFIB small business survey rose to 95.4 in July from 94.1. The labour market
components improved, with the hiring plans index and the percentage of firms
with hard-to-fill job openings both increasing. These data gel with other
indicators of the labour market which suggests employment growth is likely to
remain robust in the coming months.
·
US –
Non-farm productivity rebounded in the second quarter. However, the 1.3% q/q
gain only just reversed the 1.1% decline in the first quarter. The more
worrying aspect is trend productivity, which remains poor. Over the past 10
years, real compensation per employee hour has increased by an annual average
of only 0.6%.
·
Euro
area – Greece secured an agreement with its creditors on detailed terms of a
third bailout package worth an estimated EUR86 billion. The package will run
for three years and will require significant fiscal and structural reforms.
However, given the economic deterioration in Greece, fiscal targets for the
Greek government have been revised sharply lower. The agreement will provide
national parliaments with time to approve the package before Greece’s 20 August
payment to the ECB falls due.
·
Currency
– AUD direction now depends on the path of the CNY, with markets questioning if
the ‘one-off’ devaluation will extend. Chinese July economic releases will be
closely watched.
·
Equity
– The major US bourses fell 1.0-1.3%, with IT, industrials and materials stocks
underperforming.
·
Rate
– US and core euro area sovereign bonds rallied. US Treasuries rallied sharply
and the curve flattened, with the 10-year yield declining 5 bps to 2.14% and
the 2-year yield 2 bps lower at 0.67%.
·
Energy
– Crude oil prices were weaker overnight. The sharp fall in WTI prices has
increased the spread between Brent-WTI. On the supply side, US crude stockpiles
are expected to fall by 2 million barrel this week.
Precious Metal – Gold prices
were traded higher by 0.22% above $US1100.|
INDICATIVE MAJOR CURRENCIES
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