Economic wrap: awaiting Jackson Hole - Westpac

Analysts at Westpac offered an economic wrap and outlook for the end of the week's business.

Key Quotes:

"US durable goods orders lived up to its famously volatile reputation, the headline and core measures of orders all beat expectations: headline +4.4% (consensus 3.4%) and ex-transportation +1.5% (consensus 0.4%). Core orders (ie non-defence ex aircraft) also posted a very handy +1.6% gain, well above consensus at 0.2%. Drilling into the detail virtually all areas saw gains (7 of 8 categories all higher in July). Taking off some of the shine though, shipments were soft, down 0.4% (consensus +0.3%) while the prior month was revised down to -0.5% from -0.2% so the second update on Q2 GDP due tomorrow will see minor downward revisions.

German IFO business sentiment fell from 108.3 to 106.2 (vs 108.5 expected). While all readings remained above 100, suggesting that the German recovery remains intact, the data does flag risks from Brexit.

Economic Event Risks Today

Fed Chair Yellen’s address at the Jackson Hole symposium will be closely watched, particularly following the broad array of views on inflation offered lately by other FOMC members.

US Q2 GDP is expected to be little changed in second estimate."