Australian shares are set to extend their advance. Cooler US inflation bolstered US equities and commodities. $A surges towards US70¢.
Goldman Sachs’ economists Kamakshya Trivedi and Dominic Wilson struck an optimistic tone in their latest global market view note.
“Heading into 2023, there is continuity in key parts of the outlook. While there is fresh weakness in US business surveys in particular, the overall US data is still consistent with an economy that is delivering slow but non-recessionary growth, with the jobs market still delivering consistently solid gains.
“There continues to be enough progress towards better US inflation outcomes to keep the pace of Fed hikes shifting down and the December CPI likely seals the deal on a shift to 25bp hikes in February. That dynamic is in turn reinforcing the notion that we are moving – at a minimum – towards more ‘ordinary monetary policy’ and lower rate volatility after last year’s front-loaded hikes.
“Despite that progress, we are early in the process for central banks to feel comfortable declaring victory. The back-to-back G3 central bank meetings put a halt, at least temporarily, to the sharp financial conditions easing that dominated in November and early December. And the Fed is signalling further rate hikes and a terminal rate in the low 5s, a bit above current market pricing.
“But although these developments are broadly in line with the outlook we set out in mid-November, in some key respects, the global landscape has shifted more meaningfully in recent weeks.”
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
ASX LIVE: Australian shares poised to rise at the open on Wall Street advanceAustralian shares set to open higher. Wall Street advances. Bitcoin holds above $US17,000. $A hovers near US69¢.
Read more »
ASX LIVE: Australian shares are poised to open higherAustralian shares to open higher; US stocks rally ahead of December CPI data; $A advances; oil nears $US83 a barrel. Follow updates here.
Read more »
ASX to rise, Dow gains, bitcoin leapsAustralian shares are poised to open higher. Cooler US inflation bolstered US equities and commodities. $A surges towards US70¢.
Read more »
ASX LIVE: Inflation tops forecasts at 7.4pc, retail sales beat at 1.4pcMonthly inflation comes in hotter than forecast. Retail sales beat expectations. Lithium producers jump. Gold, copper advance. Xero tumbles. Follow latest here.
Read more »
ASX climbs 0.9pc, buoyed by iron ore, lithium stocksThe major miners advanced as iron ore futures held above US$120 a tonne. BHP jumped 1.5 per cent and Fortescue climbed 2.4 per cent.
Read more »
ASX to rise, Wall Street higher on CPI positioningAustralian shares are set to gain, in line with a rally in New York as investors bet on cooling inflation. $A hovers near US69¢. Oil rebounds.
Read more »