Daily Market Briefing, Asia Pacific

• Debt jitters. Concerns about UK debt pushed up yields & weighed on GBP. Shaky risk sentiment supported the USD. AUD lost some ground.• AU growth. Q2 GDP released today. A few push-pull forces at work. Growth expected to have picked up. RBA set to continue to lower rates slowly.• Macro events. BoE members speak tonight, as does RBA Gov. Bullock & Fed voter Musalem. US JOLTS job openings data also released. Global Trends A few jitters across markets overnight with worries about the UK’s fiscal sustainability at the front of investors’ minds. Pressure is on UK PM Starmer and...

• Quiet markets. US holiday overnight. European equities ticked up. USD a bit softer. AUD near the top of its multi-week range.• Economic trends. US macro headwinds continue to build. Markets are pricing in a stream of US Fed interest rate cuts from the mid-September meeting.• Event Radar. AU GDP due Wednesday. US ISM survey out tonight. Later in the week focus will be on the monthly US jobs report (Fri night AEST). Global Trends A quiet start to the new week in markets. No surprise given the US was closed for ‘Labor Day’. There was no reaction to the...

• Consolidation. Modest moves across markets. US bond yields fell again. AUD ticked higher. AUD also strengthened a bit on most of the major crosses.• AU CPI. Inflation re-accelerated with base-effects related to electricity subsidies a factor. We expect the RBA to continue to ease policy slowly.• Data flow. Fed Governor Waller speaks tomorrow. US PCE deflator due Friday night. Next week AU GDP & US non-farm payrolls are on the schedule. Global Trends Fairly modest moves across markets overnight with little new information coming through to shift the dial. US equities ticked higher (S&P500 +0.2%), though stocks have lost...

• Cautious tone. Hawkish Fed soundbites & positive US data saw yields tick higher. US equities slipped back. AUD & NZD remain on the backfoot.• Fed speak. Chair Powell speaks at Jackson Hole tonight. Speech should generate some volatility & set the tone for next week’s trading as well.• Chair Powell. Market pricing more ‘dovish’ than the Fed’s view. Will Chair Powell lean against aggressive expectations or endorse them? Global Trends The cautious tone continued across markets overnight. Nervousness about tonight’s speech by US Fed Chair Powell at the annual Jackson Hole event (12am AEST) was compounded by ‘hawkish’ soundbites...

• Market wobbles. A small bout of risk aversion overnight. US equities declined while the USD ticked up. AUD & NZD lost some ground.• RBNZ meeting. RBNZ expected to cut rates again today. Will it flag even more easing down the track? NZD & AUD/NZD volatility likely to lift today.• Fed speak. Markets focused on Fed Chair Powell’s upcoming Jackson Hole speech (Fri night AEST). Will Chair Powell be more ‘dovish’ than priced? Global Trends A few risk-off wobbles across markets overnight. There was no new major news driving the moves, rather a pullback in some markets with stretched valuations...