"A key factor in recent market moves is the belief that weaker growth will bring further stimulus [and] the 224,000 US jobs created in June directly contradicts that belief. "While one number is not enough to reverse the thinking, it raised doubts. Interest rate markets now reflect a consensus closer to two US rate cuts this year, rather than three." The major miners led the market losses on Monday after the price of iron ore fell heavily. BHP Group slid 1.8 per cent to $40.56 and Rio Tinto fell 1 per cent to $102.91. Major banks also weighed the market down. Credit Suisse downgraded its earnings expectations for each of the commercial banks on the back of the latest rate cut and warned they would struggle to pass through even a majority of a future cut. Commonwealth Bank led the losses falling 1.2 per cent to $81.28, Westpac dropped 1.2 per cent to $28.02, ANZ declined 1 per cent to $27.88 and NAB closed the session at $26.75, down 0.8 per cent.

Bendigo & Adelaide Bank slid 1.5 per cent to $11.39 and Bank of Queensland lost 1.2 per cent to end the day at $9.44. Infrastructure and real estate investment trust stocks were weaker on Monday as Australian bond yields rose firmly. Goodman Group fell 3.8 per cent to $15.46, Transurban slid 1.3 per cent to $15.12, Scentre Group dropped 1.9 per cent to $4.05 and Dexus declined 2.3 per cent to $13.58. G8 Education shares fell after US investment bank Moelis &Company reduced its recommendation on the company from 'buy' to 'hold' and reduced its price target. Its shares closed 9.1 per cent lower at $2.79. SpeedCast International continued to recover from its 50 per cent sell-off at the beginning of last week, rising 6.4 per cent to $1.92 on Monday. Perennial Value Management increased its stake in SpeedCast to 10.7 per cent the day after its fall. The investment manager had become a substantial holder in the company just a day before it plummeted. Stock watch

AUDINATE GROUP Morgan Stanley initiated coverage on Audinate Group with an 'overweight' rating saying it had a dominant industry position in networked audio and that structural tailwinds were accelerating. The company builds media networking technology, such as the PA systems across Sydney train stations. The broker said it saw strong sales growth in audio, accelerating software sales and revenues from its expanded video offering. The broker also added the majority of industry participants noted a strong future in networked audio. The analyst added that a de-rate was unlikely given its strong growth trajectory. Morgan Stanley initiated with a price target of $10.30, 33 per cent above its Friday close. What moved the market US GROWTH Capital Economics are not expecting US growth to recover until mid-2020 and even then, the improvement will only be slight. This is despite the market expecting a lift in the second half of 2019. "[Investors] still seem to be very optimistic about the outlook as the S&P 500 is near a record high," said assistant economist Nikhil Sanghani. "However, we don’t think that the prospect of monetary easing in the second half of this year will stop US GDP growth from slowing sharply. Monetary policy operates with lags which is why, in our view, US growth will only recover slightly in mid-2020."

IRON ORE Iron ore prices crumbled last week, falling 8.3 per cent in the final two days of trading. The China Iron and Steel Association asked regulators to investigate whether “non-market factors” were behind the recent rise in prices, which rose to $US127.15 a tonne on Wednesday. "The group believes that iron ore prices aren’t sustainable at current levels and that speculation may have helped drive the rally in iron ore prices to 5‑year highs," said CBA mining & energy commodities analyst Vivek Dhar. Even after last week's drop, the price of the bulk is still up more than 60 per cent year-to-date. US DOLLAR The US dollar rose on Friday despite a mixed US non‑farm payrolls report. While payrolls expanded by 224,000, well above expectations of 160,000, the unemployment rate rose and wage growth stabilised. "The US non‑farm payrolls number is really distorted and it has actually created more confusion," said TF Global Markets chief market analyst Naeem Aslam. "This is because the headline number has improved but the average hourly earning number has dropped, and I think the initial reaction hasn’t factored in all the information." MAJOR BANKS

Credit Suisse downgraded its earnings expectations on each of the six commercial banks after incorporating a lower net interest margin to account for the lower cash rate. It also warned of future earnings tightness. "The market is still expecting at least one further cash rate cut," said analyst Jarrod Martin. "The ability of the banks to pass through the majority of the cut is severely hampered in our view unless further material earnings impacts are felt or the impact of each subsequent cut is dampened."