Markets Overview

  • ASX SPI 200 futures down 0.3% to 6,558.00
  • Dow Average down 0.7% to 31,072.61
  • Aussie up 0.3% to 0.6813 per US$
  • U.S. 10-year yield rose 6.8bps to 2.9837%
  • Australia 3-year bond yield rose 5.6 bps to 3.03%
  • Australia 10-year bond yield rose 2.8 bps to 3.44%
  • Gold spot little changed at $1,709.29
  • Brent futures up 4.4% to $105.63/bbl

Economic Events

  • 11:30: (AU) RBA Minutes of July Policy Meeting
  • 12:00: (AU) RBA’s Bullock-Speech

Asian shares face a downbeat start Tuesday after Apple Inc.’s plans to slow hiring highlighted concerns that aggressive monetary tightening to tackle inflation will end up triggering a global economic downturn.

Futures fell for Australia and Hong Kong, while Japan reopens after a break. The S&P 500 turned lower, erasing a 1% gain, on the report that the iPhone maker plans to slow some hiring and spending due to growth risks.

The reversal dented a bout of investor optimism encouraged by a dip in the dollar, whose strength this year reflects the prevailing caution in global markets. A dollar gauge remains in the vicinity of a record high.

Treasuries retreated but the 10-year yield only briefly topped 3%. That suggests buyers see value at such levels amid troubling economic prospects and expectations for a short, sharp Federal Reserve interest-rate hiking cycle that gives way to cuts next year.

Copper, iron ore and oil rebounded. Crude is back above $100 a barrel and according to Iraq’s energy minister will stay there for the rest of the year.

Other News

Australia’s natural environment is in a state of rapid decline across almost all indicators as climate change, habitat loss and invasive species devastate ecosystems and native animals.

The 2021 State of the Environment report released by the government today found not a single indicator of Australia’s ecological wellbeing had improved since 2016, with the number of vulnerable and endangered species increasing by 8%.

The report, prepared by independent experts, said a failure to address the environmental warning signs, including the threat of climate change, would “result in species extinctions and deteriorating ecosystem condition, which are reducing the environmental capital on which current and future economies depend.”

Among the ecological areas which were ranked as “deteriorating” in the new report were Australia’s land and soil quality, inland water supply, native vegetation and water and air quality.

Minister for the Environment Tanya Plibersek said the former government, who lost power in a May election, had delayed the report in an attempt to suppress its unflattering findings for as long as possible.

Plibersek described the report’s findings as “shocking.” “It tells a story of crisis and decline in Australia’s environment. And of a decade of government inaction and wilful ignorance,” she said.
The minister will provide the Australian government’s response to the report in a speech in Canberra today.

Professor of Wildlife Ecology and Conservation at Deakin University Euan Ritchie said in a statement the report confirmed the “grim reality of Australia’s utter failure of environmental and conservation stewardship.”

“These events are all symptomatic of governments and society not acting on the science and evidence to sufficiently address key threats to biodiversity and promote a more sustainable future,” he said. However Ritchie said it wasn’t too late to take action to protect Australia’s environment.

In the report, the authors recommended taking more rapid action on climate change and collaborating more closely with Indigenous Australian communities. In addition, the report authors called for a nationwide framework to help coordinate on environmental issues.