Rheinmetall said Q2 sales were €3.29 billion, versus expectations of €3.11 billion.

Ruilian Bank strategist Peter Kinsella said in a report that yen weakness is likely to persist because the Bank of Japan is unlikely to deliver major policy changes or signal an accelerated tightening this Friday. Japan's real interest rates (inflation-adjusted) remain negative. He said that unless the Bank of Japan makes a credible, sizeable rate-hike commitment, yen appreciation is unlikely even if authorities wish to see a stronger currency. Investors should expect more threats of intervention to support the yen from Japanese authorities, but Kinsella said such rhetoric often amounts to bluster.

Capital Economics economist Abhijit Surya said softer-than-expected Australian inflation will likely keep the Reserve Bank of Australia on the sidelines. With core inflation unexpectedly down in Q2, the RBA is unlikely to feel immediate pressure to hike; the data could prompt it to keep rates unchanged at the August meeting.