- The US economy remains supported by robust consumer spending and jobs growth, but trade uncertainty is having a negative effect on business investment.
- Markets strongly expect the US Fed to lower interest rates at its September meeting as Powell stated the Fed would “act as appropriate to sustain this expansion.”
- The UK’s new prime minster Boris Johnson threatened to suspend parliament until 14 October if it does not agree to hold a general election.
- Chinese economic news has been on the soft side, with the impact of the trade war reflected in falling industrial production growth and a contraction in manufacturing.
- The Australian economy recorded its worst GDP result since the GFC, vindicating the RBA’s latest round of easing and setting expectations for further cuts.
Read the full Market Update prepared by Lonsec here.