NAB Business Confidence fell; China June CPI up; UK May GDP up; German ZEW Economic sentiment tumbles; Canada Housing starts to jump and JOLTS Job Openings edged down.

The market sentiment was constructive in Asian and European session whereas in late NY session recent US-China trade war headlines dampen the emotion again. JPY strengthen across the board, and the US Dow Jones futures fell rapidly. The 10-year Treasury yield closed at 2.87 vs. 2.86 Tuesday.

AUD: The business confidence edged down 1pts to +6 index points, to be around its long-run average level. China PPI rose by 4.7% from 4.1% in May and the CPI on an annual basis in June up by 1.9% from 1.8% a year earlier. On a MoM basis, CPI fell 0.1%.
GBP: The monthly UK GDP grew by 0.3% in May. Services, Construction and Agriculture output expanded but drop in production was learned.

EUR: The Economic Sentiment for Germany recorded a decrease of 8.6 points in July 2018 and now stands at minus 24.7 points. This is the lowest reading since August 2012, and well below the long-term average of 23.2 points, ZEW reported.


ZEW President Professor Achim Wambach said “The current survey period has been marked by great political uncertainty. In particular, fears over an escalation of the international trade war with the United States have dampened the economic outlook. The positive news regarding industrial production, incoming orders and the labour market have been greatly overshadowed by the anticipated negative effects on foreign trade”

CAD: Building permits month on month basis increased 4.7% followed a 4.7% drop in April.

USD: The number of job openings edged down to 6.6 million on the last business day of May, the U.S. Bureau of Labor Statistics reported.

News: The Dowjones futures fell rapidly in late NY session on the story that US is preparing to publish a 200$B China Tariff list. Bloomberg reported, “President Donald Trump is preparing to release a list of an additional $200 billion in Chinese products to be hit with tariffs, according to two people familiar with the matter.” The article also discussed “The list could be released as soon as Tuesday, and likely this week, according to the people, who spoke on condition of anonymity because the matter isn’t public.”

What’s on today?

In Asian session we have Japan Core Machinery Orders and PPI (YOY), Westpac Consumer sentiment and Aussie home loans, not market movers though. Moving to European session, ECB President Draghi due to deliver opening remarks at the ECB Statistics Conference, in Frankfurt.
Things will rapidly pick up on the US session with PPI data and BOC policy meeting followed by the press conference. Additions to these, worth to focus on BOE Governor Carney Speech about the global financial crisis at the National Bureau of Economic Research conference, in Boston.

Chart of the day: USDCAD

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