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Analysts at ANZ Bank New Zealand Limited offered a snapshot of global markets and noted that stocks traded slightly higher in the US (S&P 500 up 0.2%) and rose 0.4-0.8% across Europe.  

Key Quotes:

“10-year treasury yields were up marginally, while yields were down in the UK on weaker than expected UK CPI.”

“The USD was mixed against the G10 with GBP underperforming. Oil started the day lower, but was squeezed 1% higher despite a much larger than expected build up in inventory levels. Gold was unchanged.”

“Powell’s testimony remained upbeat but did little to market volatility, with little in the way of new news in his statements.”

“US housing starts and building permits came in weaker than expected with starts falling 12.3% m/m in June and permits down 2.2%. This is a sharp correction following the strong gains in the previous month. Single family housing starts were down 9.1% with multi-family down 19.8%. With builder confidence still elevated this could just be a temporary blip. However, if this is a reaction to sharply higher costs (supplies and labour), we could see further softening of starts in months to come.”

“UK inflation undershot expectations, flat lining at 2.4% y/y in June, compared with an expected increase to 2.6%. Core inflation was expected to be stable but moderated to 1.9% from 2.1%. The odds of an August rate hike from the Bank of England pared back to 72%, compared with 84% before the release. The GBP dropped a half percent.”

“Euro zone inflation was in line with expectations at 2% y/y (core is at 0.9% y/y).”