Financial Market Newsletter

U.S factory-gate inflation slowed more than expected in July as energy and food prices declined.

U.S inflation stood at 3,4% in July, edging lower from the previous month and providing the Federal Reserve with further room to keep interest rates unchanged.

The Reserve Bank of Australia (RBA) kept its policy rate unchanged at 4,35% on Tuesday but continued to warn that inflation remains too high, particularly against the backdrop of the war in the Middle East.

China is finding a new source of export growth by supplying goods to factories around the world.

A report released by the U.S Department of Labor on Friday night showed that the world’s largest economy lost 23.000 jobs in July, far below the forecast for an increase of 83.000.

Retail sales in Europe declined in June, reflecting the prolonged impact of the war in Iran on consumer confidence.

The U.S services sector expanded at a steady pace in July, supported by stronger new orders and more positive business activity.

The number of job openings in the U.S, as measured by the JOLTS report, edged lower in June, while hiring increased slightly, indicating that labor demand remained relatively stable heading into the summer.

Manufacturing activity at Chinese factories showed fresh signs of weakness, posing a risk of slower GDP growth, although the deterioration does not yet appear severe enough to prompt the Government to introduce major new economic stimulus packages.