S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico Market
Australia’s 10-year government bond yield held around 5.1%, sitting at a five-week high as markets ramped up the odds of an imminent rate hike. The stronger outlook for tighter policy came after a hotter-than-expected July inflation report and household spending data, which showed a 1.1% jump in July, pointing to continued strength in domestic demand despite elevated borrowing costs. The RBA has already hiked rates three times this year and policymakers have warned they could tighten further. The stronger economic figures prompted several major banks to revise their RBA forecasts, with NAB expecting the cash rate to rise to 4.6% next month, while CBA and ANZ forecast a November move but acknowledge the possibility of earlier tightening. Markets are pricing roughly a 50% chance of a rate increase at the RBA’s September meeting, up sharply from 17% previously, while a November hike is fully priced in. Focus now turns to Q2 GDP and employment data for further clues on the policy outlook.
