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In US economic data, consumer inflation expectations fell from 6.8% to 6.2% in July (survey: 6.7%).

European sharemarkets rose on Monday. The pan-European STOXX 600 index rose by 0.7%. Leading the gains were financial
services (+1.7%) and autos (+2.1%) but healthcare was flat. Danish brewer Carlsberg rose 1.5% after lifting its profit growth outlook for 2022, citing a strong performance in Europe and Asia. The German Dax index gained 0.8% and the UK FTSE index rose by 0.6%. In London trade, shares of Rio Tinto rose by 0.6% but BHP shares fell by 0.2%.

US sharemarkets were choppy on Monday. Investors digested news that the US$430 billion Inflation Reduction Act had passed the Senate. Automakers rose 3-4% in response to the news with shares in Ford up 3.1% and General Motors up 4.2%. The Information Technology sector lagged. Chipmaker Nvidia Corp slid 6.3% as the company said it expects second-quarter revenue to decline 19% from the prior quarter due to weakness in gaming. The Dow Jones index rose by 29 points or 0.2% after being up 306 points. The S&P 500 index fell by 0.1% and the Nasdaq index fell by 13 points or 0.1%.

US treasuries were firmer on Monday (yields lower). US 10-year yields fell by 10 points to near 2.74%. And US 2-year yields fell by 5 points to 3.20%.


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Major currencies were firmer against the US dollar in European and US trade. The Euro rose from lows near US$1.0173 to around US$1.0220 and was near US$1.0190 at the US close. The Aussie dollar rose from near US69.30 cents to US70.05 cents and was near US69.80 cents at the US close. And the Japanese yen strengthened from near 135.45 yen per US dollar to JPY134.40 and was near JPY135 at the US close.

Global oil prices rose around 2% on Monday. Traders cited firm economic data driving prices, notably stronger export growth in China and Friday’s strong US jobs report. Despite recession fears, the data suggested that demand for oil may not ease as much as expected. Reuters cited a research report from Goldman Sachs with the broker saying the case for higher oil prices remains strong, with the market in a larger deficit than they expected in recent months. The Brent crude price rose by US$1.73 or 1.8% to US$96.65 a barrel. And the US Nymex crude price rose by US$1.75 or 2.0% to US$90.76 a barrel.

Base metal prices were mixed on Monday. Nickel, zinc and tin fell as much as 2.4%. Other metals rose as much as 4.4% with lead up the most.

The gold futures price rose by US$14.00 an ounce or 0.8% to US$1,805.20 an ounce. Spot gold was trading near US$1,789 an
ounce at the US close. The iron ore futures rose by US$1.84 or 1.7% to US$110.95 a tonne.

Ahead: In Australia the NAB business survey, consumer confidence surveys and ABS household spending indicator are issued. In the US, the NFIB business optimism index is released with IBD/TIPP economic optimism index, unit labour costs and nonfarm productivity.

Published by CommSec