Australian shares are expected to drop following the fallout from Jerome Powell’s hawkish comments at Jackson Hole, but a big week of economic data looms.
Australian shares are set to open down as the fallout continued on Wall Street after Jerome Powell’s hawkish comments at Jackson Hole.In New York: BHP -1.75% Rio -0.8% Atlassian -3.5%On bitstamp.net, Bitcoin was down -0.7% to $US19,968 at 1.50am AESTIn Australia a big week for economic data kicks off with retail sales and building approvals figures.
European Central Bank policymakers made the case on Saturday for a large interest rate hike next month as inflation remains uncomfortably high and the public may be losing trust in the bank’s inflation-fighting credentials. That’s according to Jeremy Siegel, professor emeritus of finance at the University of Pennsylvania’s Wharton School, who says such volatile stocks are gambling vehicles more than anything else, though the speculative bets can still be a small part of younger investors’ portfolios.With talk about inflation surpassing 18 per cent next year and families across the country likely to be pushed into energy poverty this winter, the UK’s economic woes are getting worse by the day.
Germany’s heavy reliance on Russian fuels has left its corporate heavyweights particularly vulnerable. A Citigroup basket of stocks sensitive to a gas shock that includes Covestro, Thyssenkrupp and Siemens has underperformed Europe’s broader Stoxx 600 market this year.
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