A rise in Australian bond yields this week shows how a showdown between two elderly and less-than-impressive politicians could send ripples of unease throughout the global system.
With Donald Trump favoured to regain the US presidency,a group of investors is starting to focus on the implications of his core economic policies. They’re concerned.
The Australian sharemarket advanced,powered by interest-rate-sensitive tech stocks and real estate investment trusts after Wall Street hit new records overnight.
The US central bank has dialled back expectations of rate cuts this year. The US sharemarket still hit another record overnight as investors bet on a soft landing for the world’s largest economy.
The technology sector gave the Australian sharemarket a boost after the world’s largest technology companies drove US stocks to record highs on Wall Street.
The Australian sharemarket held on to its gains after the latest GDP data showed the Australian economy barely grew in the first quarter,adding weight to the argument that no further Reserve Bank interest-rate hikes are required.
The US and three other countries are halving the time for settling deals from two days to one. That will increase costs,and make it harder for international investors to buy into the world’s largest economy.
At last there’s some good news on US inflation that raises hopes of interest rate cuts. But the excitement might be premature.
The US central bank is sticking to the “higher for longer” interest rate scenario factored into financial markets,while downplaying the prospect of widely feared rate hikes.
Australian stocks dived for their seventh session in the past days,with investors fearing the ramifications of escalating tensions in the Middle East,also weighing on the market was a US labour report,released overnight,that reaffirmed bets interest rates would remain higher for longer.
Joe Biden’s hopes of staying in the White House have been dealt a further blow with the release of economic numbers that also sent shivers through Wall Street.