ASX steady, health and IT nudge upwards, China cuts policy rates
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The news: The Australian sharemarket finished the day flat at 7,305 (+0.38%), despite a 3.16% lift in health care and 1.76% boost to the IT sector. Australian wage growth eased slightly in June, coinciding with a temporary increase in the market index but the dollar remains weak, fetching around 65.05 US cents. China unexpectedly cut policy rates for the second time in three months, after industrial output and retail data revealed its economy slowed further last month.
The numbers: Cochlear and CSL led the health sector gains, lifting 5.69% and 3.73% respectively. NAB boosted its third quarter profit 5.8% to $1.9 billion and announced a $1.5 billion buyback, as shares lifted 1.31% to $28.70 by the close.
The context: While China's snap decision to cut policy rates underscored a gloomy outlook for the world's second-largest economy, Japan, the next largest, grew faster than expected in Q2 on the back of strong export figures. Earnings season continues on Wednesday, with Seven West, Vicinity Centres, Dexus, Mirvac, Transurban and Endeavor posting results. On the macro front, RBNZ will determine New Zealand's cash rate tomorrow at midday, followed by UK CPI figures at 4pm Sydney time.
