1. Australia doing better than most in global economic readings
The latest reading on the strength of global economies says it’s not good news but Australia is doing better than most. The S&P Global flash PMI composite output index measures what countries are producing and gives a clue on how those economies are growing. Any number over 50 means expansion, and the US registered 45, down from 47.7 in July, marking the weakest reading since May 2020. The EU came in at 49.2. And while we were contracting too, we were stronger than most, with a reading of 49.8.

2. Look out for key influencers on interest rates
Over the next two days, US economic data and a speech at Jackson Hole Wyoming could determine how high interest rates go. US central bank boss Jerome Powell speaks on Friday about the US economy and what might need to happen to interest rates, and the stock market will hang on every word. But there will be more influencers on how high interest rates will go, with US economic growth data and inflation stats out over the next two days. If both numbers are going down, it will slow up rate rises in the US and that will influence how high interest rates go here.

3. Fixed rate borrowers beware
Thousands of borrowers are heading for a home loan jump of 4% in their interest rate repayment with fixed rate loans set to expire. Nearly two million fixed rate loans worth more than $450 billion are due for renewal in the next 16 months. Many of these were at 2% or less but they’ll revert to rates as high as 6%! CBA estimates $22 billion of fixed loans will expire before December and another $95 billion next year. At Westpac, the respective numbers are $21 billion and $86 billion. Anyone in this boat should get a mortgage broker and switch to a variable rate loan ASAP.

4. Psychedelics of psilocybin may help heavy drinkers cut back
The active hallucinogen found in ‘magic mushrooms’ known as psilocybin has undergone rigorous testing to determine its positive effects on alcoholics and helping them fight their addiction, or in some cases even quit entirely.

The study published on Wednesday in Jama Psychiatry, tracked 93 patients, several of whom took a capsule containing psilocybin while the others were given a placebo. All patients underwent two sessions one month apart where they lay on a couch with their eyes covered and listened to music with headphones. They also received 12 sessions of talk therapy.

“During the eight months after their first dosing session, patients taking psilocybin did better than the other group, drinking heavily on about one in 10 days on average versus about one in four days for the dummy pill group. Almost half who took psilocybin stopped drinking entirely compared with 24% of the control group,” The Guardian reports.

“More research is needed to see if the effect lasts and whether it works in a larger study. Many who took a dummy drug instead of psilocybin also succeeded in drinking less, probably because all study participants were highly motivated and received talk therapy.”

5. ASX to rise, Qantas and Woolworths to report today
ASX futures were up 18 points or 0.4% to 6,921 near 4.29am AEST, with the local currency down 0.4% to 69.05 US cents.

On Wall St: Dow +0.1% S&P 500 +0.2% Nasdaq +0.5%.

Brent crude +0.7% to $US100.94 a barrel.

2-year yield: US 3.38% Australia 2.99%.

10-year yield: US 3.11% Australia 3.62%.