Here’s a breakdown of the economic data and company updates mentioned in the text:

Local Data (Australia):

Tuesday:
Consumer confidence (July)
Overseas arrivals/departures (May)
Wednesday:
Building activity (Q2)
Thursday:
Labour force (June) – Key local data set

China:
Monday: International trade (June)
Tuesday: GDP (Q2), retail sales, industrial production, infrastructure investment (June)
United States:
Tuesday: CPI (June) – Most important international release
Wednesday: Producer prices (June), industrial production (June)
Thursday: Retail sales (June), house prices (July)
Friday: housing starts (June), consumer sentiment (July)

Wednesday:
Evolution Mining (quarterly production update)
Thursday:
Aloca (quarterly production update)
Santos (quarterly production update)
yancoal (quarterly production update)
Friday:
BHP (quarterly production update)
Not specified day, but mentioned:
Rio Tinto (quarterly production update)

The June jobs and unemployment data for Australia is the most important local release this week.
The US CPI data is the most critically important international release.
Several major Australian mining companies will be releasing their quarterly production and sales updates.
* China will release a significant amount of economic data, including Q2 GDP.

Markets React to Economic Shifts, US Dollar Dips

Global markets showed mixed reactions today amid shifting economic signals, including concerns about US debt and trade uncertainties. These movements follow a week of volatility, with investors closely watching developments in the Middle East and economic policy decisions worldwide.

Market Snapshot

The Australian stock market closed 0.4 percent lower at 8,514.2 points. Conversely, the Nikkei increased by 1.6 percent to 40,197 points. The S&P 500 rose 0.8 percent to 6,141 points, and the Nasdaq saw a 1 percent increase, reaching 20,167 points.

Superannuation Gender Gap Addressed

New data highlights that women retire with significantly less superannuation than men. This disparity widens during the years women take time off work to raise children. However, a recent change means superannuation will be paid on parental leave starting in July, which is a historic achievement.

This change aims to tackle retirement inequity and improve financial outcomes for women.

Middle East Tensions Ease, Oil Prices Fall

The recent Middle East oil crisis has subsided for now, causing oil prices to fall and shares to rise to near-record highs. According to Shane Oliver, AMP’s chief economist, the situation stabilized after Iran’s response was viewed as symbolic.

“Oil supply is key when it comes to conflict in the Middle East.”

—Shane Oliver, AMP’s chief economist

US Dollar’s Decline

The US dollar continues to struggle, hitting its lowest level since March 2022. Several factors contribute to this decline, including the strong inverse relationship between the S&P 500 and the US dollar, uncertainty regarding Fed leadership, and concerns over US growth.

“The US dollar Index (DXY) put in a daily close below its June 12 low of 97.61, with price trading to a low of 97.01, the weakest level since March 2022.”

—Chris Weston, Market analyst from Pepperstone

The US dollar index has dropped 2.1 percent in June, marking its fifth consecutive monthly fall. Foreign investors are also reducing their exposure to the US. As of May 2024, the US debt held by foreign investors was approximately $7.9 trillion, indicating decreasing confidence in the US economic outlook (US Treasury).

Rental Income and ATO Statistics

ATO statistics show that 2.3 million Australians declared rental income in 2022-23. The majority of these landlords, about 71 percent, own only one investment property. The ATO released the statistics today.

The Productivity Roundtable

Treasurer Jim Chalmers has issued invitations to a small group of people to discuss solutions for the nation’s lagging productivity growth. The initial list of attendees includes representatives from various sectors, such as trade unions, business councils, and social services.

The Australian Dollar’s Rise

The Australian dollar is currently at its highest level this year, trading at 65.55 US cents. This strength is attributed to US dollar weakness and a rise in iron ore prices, Australia’s largest export commodity. This is the highest the Aussie has been since November 2024.

Tax Avoidance by High Earners

The Australia Institute analyzed ATO data, revealing that 91 individuals earning over a million dollars in 2022-23 paid no tax. They claimed around $390 million in deductions. The analysis showed these individuals claimed $62.8 million in deductions for accountant and lawyer fees.

Here’s a summary of the key points from the provided text:

CPI and RBA rate Cut: A reader suggests the RBA will be pressured to cut rates in July due to low CPI numbers. The author agrees, noting the risk of undershooting the inflation target and causing unnecessary economic hardship. They mention that market economists and the RBA are usually cautious about monthly CPI data, but the current figures are low enough to warrant concern. They also highlight that NAB’s Sally Auld already has a July rate cut as her base case.

Fuel Prices: A reader asks why diesel prices are already high despite recent oil price drops. The author explains that oil price changes take weeks to affect retail prices due to refining and shipping times. They also mention Treasurer Jim Chalmers has warned fuel retailers against price gouging and has asked the ACCC to monitor prices.

Superannuation: The author notes that most people don’t check their superannuation often, but financial experts recommend being more observant.

Market Expectations for Rate Cut: Financial markets are pricing in an 88% chance of a July interest rate cut after weak inflation data. Though,only one of the four major banks (NAB) currently forecasts a July cut.