A one Australian dollar coin ($1.09) is seen in this picture illustration taken in Sydney April 29, 2011.
IN PHOTO: A one Australian dollar coin ($1.09) is seen in this picture illustration taken in Sydney April 29, 2011. The Australian dollar consolidated near recent highs against a broadly weaker U.S. currency on Friday and within spitting distance a huge chart objective at $1.1000, having enjoyed its best month so far this year. REUTERS/Daniel Munoz

Australia: It was a tough night for markets with equities and commoditiesfeeling the heat after Chinese stocks fell lower in afternoon trade to finishdown an amazing 8½% on the day. Chinese growth sentiment has notbeen helped by indicators such as last Friday’s Caixin Manufacturing PMIthat printed much lower at 48.2 and yesterday’s industrial profits datadown 0.3% y/y to June, confirming stalling industrial earnings since lastAugust-September. In other parts of financial markets, metals and oil werelower, with oil weighed down by more than ample supply but equally dueto the large fall in Chinese equities. Should sentiment continue to remainsoft, the market is expecting further underperformance from the AUDacross the board, but interestingly, the move in the AUD hasn’t translatedinto a wholesale move to the USD. The JPY has found “safe haven”support, while the EUR has managed to make some gains. Locally, it is aquiet day today with only the weekly ANZ-Roy Morgan ConsumerConfidence reading for last week. This reading comes after last week’s4.5% bounce-back as headline Greek news faded from local headlines.

Majors: As stated earlier, Shanghai’s fall, its sharpest one-day fall since2007, dominated news and dragged US and European equity marketslower thereafter. The initial reaction was position reduction seeing USDbeing sold off and EUR, JPY, AUD and NZD firming. Tonight the initialfocus will be on the first cut of the UK’s growth rate for Q2, a pick up from0.4% in Q1 to 0.7% for Q2 tipped (annual growth of 2.9%). In the USthere’s Case-Shiller house prices and the Richmond Fed manufacturingindex are due, but the market will be more interested in ConferenceBoard’s measure of Consumer Confidence, including the measure’s “Jobshard to get” index, very much a labour market view from the street whereimproving perceptions of the job market have stalled recently. Finally,headline consumer confidence is expected to show a pull back to 100.0from 101.4.

Economic Calendar 28 JUL

  • AU ANZ Roy Morgan Weekly Consumer Confidence Index
  • UK GDP Q2US Services PIM Jul
  • US Consumer Confidence Jul

[Kick off your trading day with our newsletter]
More from IBT Markets:
Follow us on Facebook
Follow us on Twitter
Subscribe to get this delivered to your inbox daily