Asian Stocks Were MIxed Despite Rate Cut from RBA

August 2, 2016

Asian Stocks Were MIxed Despite Rate Cut from RBA

This article is originally referred from iForex News

Asian stock markets were mostly down, with the Shanghai Composite Index managing slight gains, but the Nikkei down 1.47% and Australia’s ASX also down, despite a rate cut from the RBA, which lowered the cash rate by 25 basis points to 1.50%.

German KBA new vehicle registrations fell 3.9% year over year in July, but new car registrations in the first seven months of the year were still up 5.4% year over year, highlighting that the private sector continues to underpin domestic demand and overall growth.

U.S. chain store sales bounced 0.3% in the week ended July 30, after dipping 0.1% the week before, according to The Retail Economist data, breaking a string of four consecutive weekly declines. The annual pace rose to 2.5% year over year, from 1.6% year over year. Some store tax holidays to excite back to school shopping, and a pickup in demand for summer clearance items amid hot weather, helped boost sales last week.

Eurozone Producer Prices Were Higher than Expected

Eurozone producer price inflation higher than expected. The annual rate rose to -3.1% year over year from -3.9% year over year in the previous month, as base effects from oil prices start to fall out of the equation. Nevertheless, with the headline rate still stuck in negative territory, it will do little to reduce concerns about the low inflation environment and will give the doves at the ECB something to argue with, if Draghi feels the negative headwinds for the economy warrant further measures to underpin the very modest recovery.

Japan adds fiscal stimulus to boost growth. The cabinet today approved a 13.5 trillion-yen fiscal stimulus package in a bid to revive growth. The package includes cash payouts to low-income earners as well as infrastructure spending and is part of the effort to coordinate policy with the BoJ, which already extended stimulus last week although not to the extent markets had been hoping for.

Original Source: iForex News

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