Australian shares are set to open higher after US stocks enjoyed a revival. The RBA is expected to raise rates by another half a percentage point this week.
Australian shares are set to open higher as Wall Street enjoyed a big July rebound – markets also expect the Reserve Bank of Australia to put up rates by another half a percentage point.P 500 +1.4% Nasdaq +1.9%The local currency was down 0.1 per cent to 69.85 US centsThe yield on the US 10-year note increased to 2.89 per cent.Economists expect the Reserve Bank of Australia to deliver a 0.5 per cent rate hike this week despite weaker Q2 CPI data. It would be the third such hike.
“While its true that many households are well ahead on their mortgage payments, many [are] seeing a massive increase in their monthly debt servicing bill. On the RBA’s own analysis around 1.3 million households are set to see a 40% or greater increase in their mortgage payments with a 3% rise in interest rates. This at a time of falling real wages will have a huge impact on spending in the economy and risk a significant rise in forced property sales.
Wall Street closed out its best month since November 2020 as Amazon and Apple added about $196 billion in market value after they joined technology peers Alphabet and Microsoft in assuaging investor concerns by reporting higher revenue even as consumers curb their spending amid rising inflation. “What’s more, with a gloomy global economic backdrop , we suspect investors’ appetite for risk will remain fragile, weighing further on equity valuations for a while yet. Finally, we still think that investors are overly optimistic about the prospects for corporate earnings growth.”Britain’s top equity indexes marked their strongest monthly performance of 2022, as a jump in commodities and a slew of upbeat earnings reports from companies like NatWest outweighed economic slowdown worries.
“For lenders like Standard Chartered and HSBC with an Asian pivot there are also concerns about China’s draconian zero-tolerance to COVID approach that is leading to an economic slowdown,” she said.
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.
US floods kill at least 16 people in Kentucky as rescue teams deploy across the stateSearch and rescue teams backed by the National Guard search for people missing in record floods that wiped out entire communities in some of the poorest places in America.
Read more »
US faces new era of political violence as threats against lawmakers riseMembers of the House will now get up to $10,000 to upgrade their home security as experts warn such threats endanger the health of US democracy
Read more »
Tory MP urged to quit job as adviser to ‘climate denier’ US fossil fuel firmCritics say Mark Pritchard’s £46,800-a-year role with Linden Energy is ‘highly concerning’
Read more »
The scariest thing about this COVID wave might also be the thing that saves usAustralia has the highest number of COVID infections, hospital admissions and deaths of any time during the pandemic and modelling predicts August will see a significant further rise in cases before the curve begins to fall again.
Read more »