Markets Overview

  • ASX SPI 200 futures up 0.3% to 7,313.00
  • Dow Average little changed at 35,438.07
  • Aussie up 0.8% to 0.6792 per US$
  • U.S. 10-year yield rose 1.2bps to 3.8845%
  • Australia 3-year bond yield rose 4.9 bps to 3.97%
  • Australia 10-year bond yield rose 3.5 bps to 4.03%
  • Gold spot up 0.5% to $1,964.73
  • Brent futures up 0.6% to $83.25/bbl

Economic Events

  • 11:30: (AU) 2Q CPI Trimmed Mean QoQ, est. 1.1%, prior 1.2%
  • 11:30: (AU) 2Q CPI Trimmed Mean YoY, est. 6.0%, prior 6.6%
  • 11:30: (AU) 2Q CPI Weighted Median QoQ, est. 1.1%, prior 1.2%
  • 11:30: (AU) 2Q CPI Weighted Median YoY, est. 5.4%, prior 5.8%
  • 11:30: (AU) June CPI YoY, est. 5.4%, prior 5.6%
  • 11:30: (AU) 2Q CPI QoQ, est. 1.0%, prior 1.4%
  • 11:30: (AU) 2Q CPI YoY, est. 6.2%, prior 7.0%

Asian markets are likely to be subdued Wednesday as investors await the Federal Reserve’s rate decision, with equity futures for the region mixed and currencies holding to narrow ranges in early trading.

Contracts for Japanese shares were flat, those for Australia rose slightly and futures for Hong Kong showed a small decline. The yen was little changed near 140 to the dollar while the Australian currency steadied after leading gains against the greenback in the previous session. Traders will be watching Australian inflation data this morning for further cues.

Treasury two-year yields, which are more sensitive to imminent Fed moves, dropped five basis points to 4.87%. The dollar halted a five-day advance Tuesday.

Oil slipped slightly Wednesday after recent gains amid tighter supplies and optimism that China’s government will boost the country’s economy.

Other News

PwC Australia has said it has improved its compliance efforts in the wake of a tax leak scandal.

The Big Four company filed its first compliance report to the country’s tax authorities, the government announced Tuesday, designed to ensure it’s taking steps to avoid a repeat of the tax leaking scandal.

Australia’s Tax Practitioners Board published the compliance report noting that PwC, also known as PricewaterhouseCoopers LLP, said it had improved its management of confidential government consultations. In November the tax watchdog told the Big Four firm to report any improvements it had made to that contract management process every six months until the end of 2024.

PwC has admitted that it previously leaked details of confidential government tax plans.

PwC also published the compliance report on its website and added in an online statement: “It is not a requirement under the order that PwC’s statements are made public but we are committed to publishing these reports as we continue to enhance the firm’s transparency and culture.”

The TPB “will continue to make enquiries into this matter,” chair Peter de Cure said in a statement.

The Tax Practitioners Board had previously told PwC to make improvements in three areas: compliance training for staff and partners, maintenance of the central register of confidentiality agreements and regular reports on the management of PwC staff involved in government tax consultations.

PwC’s compliance report said that it had given additional training on legal and ethical issues to more than 1,300 people, and introduced central approval and a registry process for confidential government consultations with oversight by its executive board.