The Australia 200 8 points (-0.09%) lower at 8688 as of 2.35pm AEST.<\/p>\n
Sharp sell-off as market reacts to US-EU trade deal<\/p>\n
The\u00a0Australia 200 (ASX 200)<\/a> experienced a sharp 54-point (-0.62%) sell-off in early trading<\/a>, taking the index<\/a> to a seven-day low of 8643.5 before dip buyers emerged to steady the market<\/a>.<\/p>\n The initial excitement generated by the United States-European Union (US-EU) trade deal over the weekend evaporated. Concerns grew over how effectively the White House has used its economic and diplomatic leverage<\/a> to secure significant investments and concessions for the US, potentially at the expense of other nations.\u00a0 \u00a0 \u00a0\u00a0<\/p>\n RBA rate decision hinges on inflation data<\/p>\n Also contributing to today\u2019s cautious session are nerves ahead of tomorrow\u2019s Australian second-quarter (Q2) consumer price index (CPI)<\/a> report. This report will be the final determining factor as to whether the Reserve Bank of Australia (RBA) cuts interest rates<\/a> in August – bringing potential relief to Australia’s mortgage holders – or elects to keep rates on hold, opting for short-term pain for long-term gain in the fight against inflation<\/a>, which many think has already been won.<\/p>\n For the record, the core measure of inflation, the trimmed mean, is expected to increase by 0.7% quarter-on-quarter (QoQ), which would see the annual rate ease to 2.7%, down from 2.9% in Q1. This would be in line with the RBA\u2019s forecasts and, along with June\u2019s disappointing jobs report, could give the green light for the RBA to cut rates at its August meeting.<\/p>\n However, a trimmed mean print of 2.9% year-on-year (YoY) or higher would increase the chances of the RBA keeping rates on hold in August, which in turn would likely lead to a sharp sell-off in the Australia 200 tomorrow.<\/p>\n","protected":false},"excerpt":{"rendered":"The Australia 200 8 points (-0.09%) lower at 8688 as of 2.35pm AEST. Sharp sell-off as market reacts…\n","protected":false},"author":2,"featured_media":12727,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[64,63,99,171],"class_list":{"0":"post-29360","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-au","9":"tag-australia","10":"tag-business","11":"tag-markets"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/29360","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=29360"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/29360\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/12727"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=29360"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=29360"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=29360"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}