Australia Retail Sales Increase

News Event

From Trading Economics: Retail sales in Australia rose 0.4 percent month-on-month in August of 2016, compared to a flat reading in July and beating market estimates of a 0.2 percent rise. It was the highest growth since January, mainly driven by a rebound in sales at department stores (+3.5 percent from -5.8 percent in a month earlier). Sales also increased in cafes, restaurants and takeaway food services (1.2 percent), food retailing (+0.3 percent) and household goods retailing (+0.2 percent). In contrast, sales dropped in other retailing (-0.6 percent) and clothing, footwear and personal accessory retailing (-0.4 percent). In August 2015, retail sales rose 0.3 percent. Retail Sales MoM in Australia averaged 0.49 percent from 1982 until 2016, reaching an all-time high of 8.10 percent in June of 2000 and a record low of -10.60 percent in July of 2000. Retail Sales MoM in Australia is reported by the Australian Bureau of Statistics.

Market Snap

Market Opening Wrap

In Asian Equity Markets, Japan's Nikkei index rose on Wednesday morning on a weak yen, while Hitachi Ltd jumped after a Nikkei report that it plans to sell Hitachi Koki Co and a portion of Hitachi Kokusai Electric for a total of more than 100 billion yen. At midmorning trade, the Nikkei gained 0.4 percent to 16,802.97, helped mainly by advances for exporters and financial stocks. The broader Topix gained 0.6 percent to 1,347.98 and the JPX-Nikkei Index 400 rose 0.6 percent to 12,064.37. Shares of Hitachi rose 4.7 percent, Hitachi Koki Co was up 9.7 percent and Hitachi Kokusai Electric Inc rose 3.0 percent.  MSCI's broadest index of Asia-Pacific stocks outside Japan fell 0.3 percent in early trading.

In Currency Markets the dollar hovered near a two-month high against a basket of currencies on Wednesday, lifted by hawkish comments from a Federal Reserve official and higher U.S. Treasury yields. The euro rose 0.2 percent to $1.1222, extending the bounce from the previous day when it swung widely on speculation over ECB monetary policy. The dollar was little changed at 102.880 yen after rising to a three-week high of 102.965 overnight. The dollar's strength came in part from its gains against the pound, which struggled near a 31-year trough of $1.2720 after shedding about 0.9 percent the previous day. The dollar index stood at 95.989, in sight of 96.442, its highest since Aug. 9.

In Commodities Markets oil prices rose in early trading on Wednesday after a report that U.S. fuel inventories may have fallen for a fifth straight week, but contracts remained near the $50 marker where many traders currently see fair value for crude. U.S. West Texas Intermediate crude oil futures were trading at $49.14 per barrel, up 0.9 percent, from their last settlement. Benchmark Brent crude futures were trading at $51.29 per barrel, up 0.8 percent.  Spot gold was up half a percent at $1,273.40 an ounce. Among other precious metals, silver edged up nearly 1 percent. Platinum gained 1 percent to $990.60 an ounce, after touching its lowest in more than three months on Tuesday. Palladium was up 0.3 percent.

In US Equity Markets stocks fell on Tuesday as investors fretted about Britain's exit from the European Union and the prospect of a Federal Reserve interest rate hike in coming months. The S&P 500  lost 0.5 percent to 2,150.49 and the Nasdaq Composite fell 0.21 percent to 5,289.66. Ten of the 11 major S&P 500 indexes fell, with the high dividend-paying utility sector falling 2.17 percent and telecom services down 1.67 percent. In extended trade, Micron Technology was flat after the memory chipmaker reported fiscal fourth-quarter revenue above analysts' expectations. Sears rose 6.42 percent after Bloomberg reported that the department store chain's Craftsman tool brand had attracted multiple bidders.

In Bond Markets U.S. Treasury prices fell and yields jumped to almost two-week highs after a report that the European Central Bank may taper asset purchases spooked investors. The yield on the benchmark 10-year notes rose 5.9 basis points on Tuesday to 1.683 percent, before pulling back slightly early on Wednesday in Asia to 1.672 percent. German 10-year government bonds also touched an almost two-week high of minus 0.043 percent on Tuesday before closing at minus 0.091 percent.

Source: Institute of Trading and Portfolio Management