Markets Overview

  • ASX SPI 200 futures down 0.6% to 7,367.00
  • Dow Average down 0.7% to 35,282.72
  • Aussie down 0.8% to 0.6707 per US$
  • U.S. 10-year yield rose 13.3bps to 4.0002%
  • Australia 3-year bond yield fell 8.9 bps to 3.81%
  • Australia 10-year bond yield fell 8.5 bps to 3.92%
  • Gold spot down 1.4% to $1,945.16
  • Brent futures up 1.1% to $83.86/bbl

Economic Events

  • 11:00: (AU) Australia to Sell A$700 Million 4.5% 2033 Bonds
  • 11:30: (AU) 2Q PPI QoQ, prior 1.0%
  • 11:30: (AU) 2Q PPI YoY, prior 5.2%
  • 11:30: (AU) June Retail Sales MoM, est. 0%, prior 0.7%

The yen rallied and Asian equities were set to open lower as a report that the Bank of Japan would discuss tweaking policy on Friday rumbled through markets from rates to stocks.

The Nikkei report that the BOJ would consider letting 10-year yields rise to some degree beyond its 0.5% cap pushed Treasury yields up as well as the Japanese currency. That impact in rates, which were already rising on US economic data, flowed into stocks on Wall Street, which erased gains. Futures for equity benchmarks in Japan, Hong Kong and Australia all are pointing to declines.

The BOJ is widely expected to stick with ultra-easy policy, with investor focus on whether authorities use a likely revision to their inflation forecast as an excuse to tweak yield curve control settings. If officials adjust YCC, markets will likely take it as the beginning of a policy tightening cycle, according to Kristina Clifton at Commonwealth Bank of Australia.

Other News

A record number of Australians had disputes with financial firms in the past year as growing budget stress, scams and insurance payout delays weigh on consumers, according to an independent financial watchdog.

More than 96,000 complaints were lodged with the Australian Financial Complaints Authority in the 12 months to the end of June, a 34% on the previous financial year, the non-government ombudsman service said in a statement Thursday.

“We are deeply concerned by the volume of complaints consumers are having to escalate to AFCA,” David Locke, AFCA’s chief ombudsman and chief executive officer, said. “It’s not fair on consumers and not good for business. We need to see a significant improvement from firms.”

The impact of financial stress from rising interest rates and the higher cost of living has become increasingly evident in complaints recently, Locke said.

Buy now, pay later complaints rose 57% in the 12 month period, as people turned to other forms of credit to manage tight budgets. Personal transaction accounts overtook credit cards as the most complained about product, with disputes up 86%. This was partly due to scam-related complaints, which rose 46% last year.

The top issue in complaints was delay in insurance claim handling.

During the 12 month period, consumers secured A$253.8 million ($173 million) in compensation and refunds after coming to AFCA, it said.

AFCA provides consumers and small businesses help dealing with financial disputes and offers a mediation service. Where an agreement can’t be reached, it can issue decisions that are binding on financial firms.