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Service sentiment

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  • China's service sector sentiment indicators continued to point to expansion, while that of Australia pointed to contraction (deteriorating for the eighteenth consecutive month). The divergence is not that surprising given the domestic bias of such measures.
  • Service sector sentiment is due from the Western hemisphere, with Euro data still indicating contraction last month and not expected to move into expansion just yet. The US and the UK surveys, however, have been indicating reasonably robust levels of expansion.
  • Australia's PM Rudd has called for a general election on 7 September. His predecessor had already called an election, but then she lost her job, so the election had to be called again. Meanwhile Russia and China have banned the import of New Zealand dairy product.
  • Markets await the publication of the Bank of England's inflation report with new forward guidance possibilities on Wednesday. By way of distraction before then, Fed President Fisher (who will be voting on policy in 2014) is to speak today in the wake of a "not too hot, not too cold" employment report.

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