Over the past week, weaker than expected employment and other economic data here in the U.S. has lead to significant pressure on U.S. markets. Emerging indices along with industrial metals, shaken by the decline in China’s June Service PMI that followed a slowdown in its manufacturing, were also weak last week, but rallied yesterday; altogether, they were markedly stronger than the U.S. indices, reflecting a stronger growth in the developing world.

Australia will keep its benchmark interest rate unchanged at 4.5 percent for the second straight month. With interest rates having been raised six times since last October and global economic recovery appearing to slow down, the Royal Bank of Australia noted justification for standing pat for now. The central bank also stated today that consumer spending and business investment were expanding, helping to alleviate some concerns of slowdown in the country. The Aussie dollar declined last week, also on slow-down concerns.Read more...