US July durable goods were simply "less bad" - ING

Rob Carnell, Chief International Economist at ING Bank, explained that there were some marginally better than expected durable goods orders don't change our view that a September rate hike from the Fed is difficult to support.

Key Quotes:

"After two consecutive quarters of outright declines in US business investment, durable goods orders for July provide a first insight into how investment in 3Q16 is shaping up. And our take on the figures is that the negativity is beginning to abate.

But this is far from a big turnaround. The headline 4.4% MoM growth in July only just offsets last month's fall, and the trend for core goods orders and shipments are still both negative. Also, while the core goods orders trend improved further, the core shipments trend got worse. Both trends are required to take a view on business investment as a whole.

These data provide no insight into the revised GDP figures for 2Q16 released on Friday. But in any case, we do not think these will change the backdrop of weak US economic growth that has been in place since at least 4Q15. Against this backdrop, Janet Yellen will struggle to make a strong case for imminent further tightening at her Jackson Hole speech later on Friday - though no doubt she will try to maintain an optimistic view, and keep further tightening options open."