- US core consumer prices lifted in line with the Fed’s 2% inflation target,vindicating June’s rate hike.
- Slowing credit growth and infrastructure spending is pointing to softer Chinese growth for the June quarter.
- Australia’s labour market continues to tighten, but employment growth and hours worked have lost momentum and wage growth is subdued.
- US tariffs on US$34 billion worth of Chinese goods came into effect in early July, with China responding in kind with tariffs on key American exports.
- European political tensions are on the rise, with the UK’s Brexit plan resulting in ministerial resignations and Italy’s budget likely to delay deficit reduction.
If you have any questions regarding this report or would like to discuss your portfolio, please contact me directly.