Central banks have engaged in a policy reversal in response to weaker economic growth and the uncertainties associated with the US-China trade conflict.
US inflation has inched higher, but core CPI measures and sluggish wages growth still point to spare capacity in the labour market.
The UK’s new prime minister Boris Johnson will enter Brexit talks with the EU, but Europe’s negotiators are unwilling to agree to the removal of the Irish backstop.
Fears of further economic fallout from the trade conflict were partially allayed following positive growth in Chinese exports in July.
The Australian economy is benefitting from the rise in commodity prices, but the Australian dollar remains under pressure due to the diverging interest rate differential.
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