Market economic wrap: no surprises from Draghi - Westpac

Analysts at Westpac offered an economic wrap of overnight markets.

Key Quotes:

"The ECB kept policy unchanged. There were no surprises from Draghi, who reiterated the downside risks to the economy, preparedness to use available instruments, and that rates are to stay at present or lower levels for an extended time - all very standard. He noted that Brexit has been weathered well by the markets and that, "in coming months when we have more information including staff projections, we will be in a better position to assess the underlying macroeconomic conditions". This was very measured, keeping the door open to more easing but clearly in no rush. On balance the comments were probably slightly less dovish that the market had expected.

US existing home sales rose 1.1% in June (vs -0.9% expected) to a cycle high. The median price rose to $247.700 – an all-time high. US jobless claims were 253k (vs 265k expected) to average 254k so far in July.

Economic Event Risks Today

Markit PMIs across Japan, Europe, and US are due. Japan shows contraction; others moderate growth."