Germany’s Economic Recovery Slows as Trade Tensions and Rising Costs Weigh on Growth 
Oil Prices Hold Steady as Ukraine Tensions and Fed Cut Expectations Support Market 
Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
Asian Currencies Steady as Rupee Hits Record Low Amid Fed Rate Cut Bets 
Fed Meeting Sparks Division as Markets Brace for Possible Rate Cut 
European Stocks Rise as Markets Await Key U.S. Inflation Data 
Japan’s Nikkei Drops as Markets Await Key U.S. Inflation Data 
Oil Prices Rise as Ukraine Targets Russian Energy Infrastructure 
Asian Currencies Edge Higher as Markets Look to Fed Rate Cut; Rupee Steadies Near Record Lows 
Asian Currencies Steady as Markets Await Fed Rate Decision; Indian Rupee Hits New Record Low 
IMF Deputy Dan Katz Visits China as Key Economic Review Nears 
Australia’s retail sales grew by 0.4 percent in August, below ANZ and market expectations. This upgrade compared with recent months (0.2 percent m/m average for the last 6 months) represents the early effects of tax and rate cuts, ANZ Research reported.
Uncertainty about the labour market and other economic conditions may have caused some shyness among recipients of extra income - including early tax cut recipients and mortgagees (who can reduce payments as rates fall).
Annual growth increased to 2.6 percent. This is a little higher than the past few months, but still below the 1-yr, 3-yr and 5-yr averages.
Clothing was a standout, with 4.9 percent y/y growth after a strong monthly result (1.8 percent m/m). Department stores (1.1 percent m/m) and recreational goods (2.9 percent m/m) also saw strong monthly growth, hinting that tax cuts were stimulating short-term discretionary spending.
In y/y terms, key non-discretionary categories including supermarket and grocery stores (4.2 percent y/y) and pharmaceutical, cosmetics and toiletries (4.8 percent y/y) continued to see stronger growth than discretionary categories. This speaks to the longer term budget pressures on households, who are focusing more on “essentials” and less on “nice to haves”.
Monthly growth was strongest in QLD (0.8 percent m/m) and ACT (1.9 percent m/m) while annual results show strength in QLD and VIC, and weakness in NSW.
