Closing Bell 1st August – RBA Leaves Rates Unchanged

It was all about the RBA today with the central bank leaving rates unchanged at 4.10%. in a statement from the bank, the RBA said, Inflation in Australia is declining but is still too high at 6 per cent. Goods price inflation has eased, but the prices of many services are rising briskly. Rent inflation is also elevated. Some further tightening of monetary policy may be required to ensure that inflation returns to target in a reasonable timeframe, but that will depend upon the data and the evolving assessment of risks.

Most Asian indices stocks rose, buoyed by strength in technology stocks as markets awaited major U.S. earnings this week, although Chinese markets lagged on more weak economic signals. China has pledged to boost credit to private companies and extend other funding measures to small firms as policymakers seek ways to shore up confidence and support the recover.

Tonight’s focus will be on US earnings updates from major drug companies Pfizer and Merck, heavy machinery giant Caterpillar and chip maker AMD. AMD currently has a PE of 460, which makes pleasing investors an almost insurmountable task