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More Than 40% of Australian Small, Medium Businesses Using AI Tools, NAB Says

More than four in 10 Australian small and medium businesses are using artificial intelligence tools, and a further 14% are planning to adopt them, with property services, finance and insurance, and business services sectors leading adoption, according to a Tuesday report by National Australia Bank (ASX:NAB).The bank said businesses operating in industries that handle large volumes of data are leading the way, with property services at 69%, finance and insurance services at 64%, and business services at 61%.NAB said 35% of businesses see automation as the biggest opportunity for AI, while 44% report they are not currently using AI, but almost every internet-enabled workplace will have some exposure through everyday tasks such as internet searches or drafting emails.

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Rising Rates, Tax Changes Threaten More Pronounced Correction for Australia's Housing Markets, Westpac Says

Rising interest rates and recent tax changes threaten a more pronounced correction for Australia's housing markets, where conditions have already been slowing amid a challenging and uncertain outlook, Westpac said in its Housing Pulse report filed Monday.Although tight supply and strong population-driven demand help limit the downside risks, investor demand is now expected to see a sharp and sustained pull-back due to tax changes proposed in the federal budget, the bank said.The tax proposals primarily impact new investor purchases of existing homes, removing the "negative gearing" treatment allowing losses to be deducted from other income and shifting from a flat 50% discount to consumer price index indexation for capital gains.But existing investors have continued access to negative gearing benefits, giving them a strong incentive to retain assets, while an exemption for newly-built houses will make them more appealing for new investors."We expect the changes to drive a steep fall in investor activity with wider market turnover declining 20%," Westpac said. "Prices are expected to move 2% lower nationally, leaving them flat over calendar 2026."Nationally, dwelling prices fell in April and May to return a flat reading on a three-month basis, while turnover has also softened somewhat alongside a material decline in auction clearance rates, according to the report.The Westpac-MI "time to buy a dwelling" index sank 14.3% over the three months to May as back-to-back rate hikes took the index to an "extremely weak" 72 reading, the bank said. The index rebounded in June but is still 3.4% below its February level and "woeful" compared to the long-run average of 119.

ASX 200

Market Chatter: Japan Moves to Curb Surging Tax-Free Small-Parcel Imports

Japan saw duty-free imports of items valued under 10,000 yen surge 20% to 209 million units in 2025, now representing over 90% of all imports, straining customs resources and disrupting domestic markets, Nikkei Asia reported on Tuesday, citing unnamed government sources.The tax exemption, originally designed for personal-use goods, is increasingly exploited through shipment splitting and false declarations, with over 3,100 abuse cases recorded in 2024, the news daily said.Domestic businesses face growing pricing pressure as cheap imports flood the market, prompting the Finance Ministry to establish an expert panel last June to address the issue, the publication said.In response, authorities plan to phase out the personal-use import exemption starting April 2028 to restore fair competition, the report said.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Market Chatter: Japan Sets 40% Household Investment Target to Shift Savings into Markets

Japan aims to raise the share of household financial assets held in stocks, trusts, and bonds to 40% by 2040 as part of a broader push away from cash savings, Nikkei Asia reported on Tuesday, citing the government.The strategy, expected to be finalized by summer, aligns with Prime Minister Takaichi's focus on boosting investment in priority sectors like AI, the news agency said.Currently, these assets make up just 23% of the nation's 2.35 quadrillion yen household holdings, the publication said, citing the central bank data.The government sees the shift as critical to mobilizing private capital for long-term growth and technological competitiveness, the report said.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Japan's Manufacturing Activity Rises in June, Flash PMI Shows

Japan's manufacturing activity expanded in June, according to preliminary data from S&P Global published Tuesday.The seasonally adjusted S&P Global Flash Japan Manufacturing Purchasing Managers' Index rose to 54.9, compared with 54.5 from the previous month.The latest print topped market expectations of 54.5, according to Trading Economics.

Australian Consumer Confidence Rises to Highest Level Since Early March

Australian consumer confidence rose 2.1 points in the week of June 15 to 21 to 72.8 points, its highest level since early March, according to a Tuesday note from ANZ.Despite the rise, confidence remains below the 2025 average, ANZ economist Sophia Angala said.The four-week moving average rose 1.7 points to 70.8 points.Weekly inflation expectations were down 0.2 percentage points to 5.8%, while the four-week moving average fell to 6%.Current financial conditions over the last year eased 0.3 points to 62.4, while financial conditions over the next 12 months rose 0.3 points to 78.9.Short-term economic confidence over the next 12 months was up 4.5 points to 64.5, while medium-term economic confidence over the next five years rose 1 point to 78.6.The "time to buy a major household item" sub-index increased 4.9 points to 79.6, the largest rise across the sub-indices and its sixth consecutive weekly rise, on the back of end-of-financial-year sales events, per the report.

ASX 200

Japan Private Sector Activity Strengthens in June, Flash PMI Shows

Japan's private sector recorded the strongest rise in total business activity in three months in June, according to preliminary data from S&P Global published Tuesday.The seasonally adjusted S&P Global Flash Japan PMI Composite Output Index was 52.5, compared with the previous month's 51.1 reading.The improvement was driven by a recovery in services activity, with the Services PMI growing to 51.8 in May from the neutral print of 50 in April, and an acceleration in manufacturing activity, with the manufacturing PMI jumping to 54.9 from 54.5.

Flash PMI: Japan's Services Activity Accelerates in June

Japanese services activity expanded in June, S&P Global data showed on Tuesday.The S&P Global Flash Japan Services Purchasing Managers' Index rose to 51.8 in June from the neutral print of 50 in May.

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International18h ago

Australia Private Sector Nears Stabilization in June Even as Orders Fall, Confidence Weakens

Australia's private sector activity edged closer to stabilization in June, but persistent declines in new orders and the weakest business confidence since the pandemic reflected lingering demand-side weakness despite easing inflationary pressures, according to a survey by S&P Global released Tuesday.The Flash Australia PMI Composite Output Index rose to 49.8 in June from 48.7 in May, remaining just below 50 no-change mark and signaling broadly stable business activity, the report said.A reading below the 50-point threshold indicates contraction.The Flash Services PMI Business Activity Index rose to 49.9 in June from 48.7 in May. The Flash Manufacturing Output Index edged down to 48.9 from 49, while the Flash Manufacturing PMI increased to 51.2 from 50.7.Output showed signs of stabilizing in June, but new orders continued to weaken, with firms reporting a fourth consecutive monthly decline amid ongoing market uncertainty and falling export demand, per the report.Business confidence fell sharply in June amid uncertainty over economic conditions and the outlook, hitting its lowest level since the onset of the COVID-19 pandemic in March 2020.Employment rose again in June as firms expanded capacity and hired across both manufacturing and services, reversing May's first job decline in nearly a year and a half.Companies cut into existing backlogs at the fastest rate in over two-and-a-half years as rising staffing levels and weakening new orders accelerated the decline in outstanding work.Input costs continued to rise sharply in June, though inflation eased for a second straight month to its lowest level since March amid widespread reports of higher fuel and transport expenses.Output price inflation eased in June as firms slowed the pace of price increases in response to moderating input cost pressures, marking the weakest rise in charges since February.

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International22h ago

US Equity Markets Mixed as Communication Services Stocks Fall, Bond Yields Move Up

US equity indexes were mixed on Monday after communication services stocks saw steep declines and government bond yields moved higher.* US Vice President JD Vance said Monday that Iran agreed to allow International Atomic Energy Agency inspectors into the country, according to media reports.* The US issued a 60-day license allowing Iran to sell oil on the international market, Bloomberg reported Monday.* July West Texas Intermediate crude oil fell $1.41 to settle at $75.19 per barrel, while August Brent crude, the global benchmark, was last seen down $2.27 at $78.30.* Super Micro Computer (SMCI) shares were up roughly 15%, the top gainer on the S&P 500, after the company said it is launching a high-performance computing data center offering based on Nvidia's (NVDA) Vera Rubin NVL4 platform.* Alphabet's (GOOG, GOOGL) Google DeepMind data scientist and Nobel Prize winner John Jumper is leaving to join Amazon (AMZN) and Alphabet-backed Anthropic, he said Friday. Shares of Alphabet were down about 5%, one of the steepest decliners on the S&P 500 and the Nasdaq.

S&P Global: UK Consumer Confidence Remains Weak in June

Britain's consumer confidence remained subdued in June as attitudes toward the labor market and spending weakened, an S&P Global survey showed Monday.The S&P Global UK Consumer Sentiment Index stood at 42.2 in June, up from 42.1 in May. This marks the most downbeat quarter since the third quarter of 2023.

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Euro Area Consumer Confidence Improves in June, Flash Data Shows

The euro area's consumer confidence index stood at -17.7 points in June, up from -19 points in the previous month, according to the European Commission's flash data published Monday.Analysts expected -18 points for the month, according to Investing.com.

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Swiss Overnight Hotel Stays Down 0.9% in May, Flash Data Shows

Hotels in Switzerland recorded a 0.9% year-over-year decline in overnight stays for May, according to a flash estimate published by the Federal Statistical Office on Monday.Hotel bookings by Swiss nationals edged down 0.4% on an annual basis, while bookings from foreigners fell 1.3%.

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India's Core Sectors Log 0.5% Growth in May

India's combined Index of Eight Core Industries (ICI) provisionally increased by 0.5% year over year in May, according to data released Monday.The Ministry of Commerce and Industry's Office of the Economic Adviser said the production of steel, cement, and electricity logged positive respective growth of 5%, 8.4%, and 8.7% in the month.On the other hand, coal, crude oil, natural gas, petroleum refinery products, and fertilizer output slipped 9.3%, 4.6%, 4.9%, 8.7%, and 0.9%, respectively, in May.In April, the final growth rate of the ICI was recorded at 1.8%.

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Persian Gulf, UK Leadership Outlooks Cap European Bourses Midday

European bourses tracked indifferently midday Monday as traders weighed media reports of a leadership change in the UK and ongoing peace negotiations in Switzerland between Tehran and Washington.Front-month North Sea Brent crude oil futures were down 1.6% at $78.80 a barrel in midday action.Tech and bank stocks led gains on continental trading floors, while food shares lagged.Investors also eyed muted Wall Street futures, but mostly higher closes overnight on Asian exchanges, including a fresh all-time record-high close on Tokyo's Nikkei 225.In political news, British Prime Minister Keir Starmer announced his pending resignation from his position as head of the national government and of the Labor Party.The pan-continental Stoxx Europe 600 Index was flat mid-session.The Stoxx Europe 600 Technology Index was up 1.2%, and the Stoxx 600 Banks Index gained 0.7%.The Stoxx Europe 600 Oil and Gas Index rose 0.5%, while the Stoxx 600 Europe Food and Beverage Index declined 0.3%.The REITE, a European REIT index, was steady.On the national market indexes, Germany's DAX was down 0.1%, but the FTSE 100 in London gained 0.4%. The CAC 40 in Paris was down 0.6%, while Spain's IBEX 35 lifted 0.5%.Yields on benchmark 10-year German bonds were lower, near 2.96%.The Euro Stoxx 50 volatility index was up 1.9% at 16.58, but still indicating below-average volatility for European stock markets in the next 30 days, a positive signal. A reading above 20 indicates choppier markets ahead, while below 20 suggests calmer exchanges.

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US Dollar Rises Early Monday; GDP, Personal Income Key Focus

The US dollar rose against its major trading partners early Monday, except for a small decline versus the pound, as markets look ahead to the final estimate of Q1 GDP and May data on personal income, spending and prices, both later in the week.There are no US data on Monday's schedule, but Federal Reserve Governor Christopher Waller is due to speak at 9:00 am ET.Tuesday's data slate includes the Philadelphia Fed's non-manufacturing reading for June, weekly Redbook same-store sales, and S&P Global's flash manufacturing and services readings for June.Wednesday's highlights include current account data for Q1 and new home sales for May.Thursday's busy schedule includes the GDP and personal income data, as well as weekly jobless claims, durable goods orders for May, and weekly natural gas stocks.Advance trade data for June, and the final University of Michigan consumer sentiment reading for June are due to be released on Friday.A quick summary of foreign exchange activity heading into Monday:EUR/USD fell to 1.1456 from 1.1476 at the Friday close and 1.1465 at the same time Friday morning. European Central Bank President Christine Lagarde is due to speak at 8:30 am ET, followed by Eurozone consumer confidence data for June at 10:00 am ET. ECB policy board member Philip Lane is scheduled to speak at 10:10 am ET, and Lagarde is set for another appearance at 11:15 am ET. The next European Central Bank meeting is scheduled for July 23.GBP/USD rose slightly to 1.3236 from 1.3234 at the Friday close and 1.3233 at the same time Friday morning. There are no UK data on Monday's schedule. The next Bank of England meeting is scheduled for July 30.USD/JPY rose to 161.7240 from 161.2919 at the Friday close and 161.2914 at the same time Friday morning. There were no Japanese data released overnight. The next Bank of Japan meeting is scheduled for July 30-31.USD/CAD rose to 1.4176 from 1.4175 at the Friday close and 1.4146 at the same time Friday morning. Canadian consumer price data for May is due to be released at 8:30 am ET. The next Bank of Canada meeting is scheduled for July 15.