Markets Overview
- ASX SPI 200 futures down 0.8% to 6,860.00
- Dow Average down 1.0% to 31,790.87
- Aussie down 0.7% to 0.6854 per US$
- U.S. 10-year yield little changed at 3.1043%
- Australia 3-year bond yield fell 9.5 bps to 3.25%
- Australia 10-year bond yield fell 6.5 bps to 3.60%
- Gold spot down 0.7% to $1,724.36
- Brent futures down 4.9% to $99.91/bbl
Economic Events
- 11:00: (AU) Australia to Sell A$1 Billion 1.75% 2032 Bonds
- 11:30: (AU) July Private Sector Credit MoM, est. 0.7%, prior 0.9%
- 11:30: (AU) July Private Sector Credit YoY, est. 9.0%, prior 9.1%
- 11:30: (AU) 2Q Construction Work Done, est. 0.8%, prior -0.9%
US stocks fell for the third consecutive day as fresh data pointed to resilience in household and labor demand, affirming the Federal Reserve’s resolve to continue to be aggressive in its fight against inflation. Commodities from oil to copper sank as the dollar rose.
The S&P 500 and the tech-heavy Nasdaq 100 finished the session at their lowest levels in a month. Treasuries ended Tuesday mixed after an unexpected rebound in August consumer confidence pushed swap rates toward pricing in another three-quarter percentage point hike for the Fed’s September meeting.
Meanwhile, bonds are sliding toward the first bear market in a generation, burning investors who erred in bets that central banks would pivot away from rapid interest-rate hikes.
The Fed this week is also set to step up the unwinding of its near-$9 trillion balance sheet. The impact of quantitative tightening is going to be relatively benign for the first six to 12 months, but could start to amplify its effects on the economy around the middle part of next year, Jeff Schulze, investment strategist at ClearBridge Investments, said in an interview.
Other risks range from China’s economic slowdown to an energy crisis that threatens to tip Europe into recession with winter approaching.
Other News
Fancy dress, wrestling and lashings of gravy were the order of the day as “one of the world’s craziest culinary competitions” returned after a two-year Covid-induced hiatus.
A host of wrestlers took part in the 12th annual World Gravy Wrestling Championships at the Rose ‘N’ Bowl Pub in Rossendale, Lancashire, on Monday.
The event sees competitors grapple in a pool of gravy in two-minute bouts.
Pub restaurant manager Carol Lowe said it was “amazing to be back”.
The charity event, which raises funds for East Lancashire Hospice, was cancelled in 2020 and 2021 due to Covid restrictions.
Ms Lowe said people came “from far and wide” to watch and take part on its return and the atmosphere had been “absolutely bouncing”.
It sees competitors wrestle in a pool of gravy for two minutes, with points being scored for fancy dress, entertainment value and wrestling ability.
“Basically, people come in fancy dress – men and ladies – and then they wrestle in gravy and get eliminated as the day goes on,” Ms Lowe said.
“It’s very messy.”
The men’s event was won by Lloyd Clarkson, with Imogen Young taking the women’s title.
(BBC News)
