Hang Seng tumbles on weak China data
Last week, the Bank of China (BOC) raised the target for its overnight rate by 25 basis points to 5% as it is considered that stronger-than-expected consumption.
The Reserve Bank of Australia
Minutes of the Reserve Bank of Australia (RBA) meeting on June 4th showed the board considered raising the cash rate by 25 basis points to 4.35% before deciding on a pause. RBA members noted a pullback in inflation but also identified a risk that economic growth slows more than expected.
"Members observed that there was considerable uncertainty about the resilience of household consumption and that the squeeze on many households' finances could result in consumption slowing more sharply than implied by the current forecasts."
US retail sales
Quite a few stats are expected on the other side of the Atlantic, with US retail sales expected to rise by 0.5% in June month-over-month (MOM) at 1.30 p.m. Then, at 2.15 p.m., US industrial production is expected to remain flat MoM. In Canada, the consumer price index is forecast to rise by 3% in June year-over-year YoY, after rising by 3.4% in June. The core consumer price index (CPI) was seen at 3.6% YoY.
The Bank of China
Last week, the Bank of China (BOC) raised the target for its overnight rate by 25 basis points to 5% as it is considered that stronger-than-expected consumption and stubbornly tight labour markets were supporting inflationary pressures.
Equity markets
Elsewhere on the equity market, Ocado returns to profit with an Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of £17 million. The group confirms its earnings guidance for the year. In Switzerland, Pharmaceutical group Novartis raises its earnings guidance and announces a $15 billion share buyback programme.
Earnings reports will resume today before the bell with Bank of America. The bank is expected to post earnings of 84 cents per share, which would be a 15% increase on the same quarter a year ago. Revenue is forecast to rise by about 10% to €25.02 billion. Also due are BNY Mellon, Omnicom, and Lockheed Martin.
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