The markets were trading mixed with the U.S. Dollar managing to hold firm by market close. The markets were influenced by headline reports about China imposing a new round of tariffs of $16 billion.
Reports about the ongoing tussle between the U.S. and the sanctions imposed on Iran continued. The U.S. was also seen preparing for a fresh round of sanctions on Russia with speculation that it could also hit the crude oil market.
Economic data was clearly dominated by the broader themes in the market. The U.S. Producer Price Index for July showed a flat print for the month. Core PPI rose just 0.1% on the month, falling below estimates of a 0.2% increase.
Earlier today, Japan released its preliminary first-quarter GDP report. Data showed that Japan’s economy grew 0.4% on the quarter. This brought the annual GDP growth rate to 1.9%.
Later in the day, the UK’s Office for National Statistics will be releasing the preliminary GDP report for the second quarter. Economists forecast that the UK’s economic output doubled, rising 0.4% on the quarter. Later, the Manufacturing and Industrial Production alongside Construction Output reports will be coming out.
A busy afternoon will see the release of Canada’s employment change for the month while the U.S. will be releasing its inflation numbers for July.
