Rising business inflation and lower profits at big Wall Street banks weigh on US stocks. European stocks end lower, while the Australian share market is set to fall after iron ore prices tumble.
US stocks have fallen back as surging inflation in North America kept investors nervous and amid weaker-than-expected earnings from a Wall Street titan.The Dow Jones index fell 0.5pc to 30,630, the S&P500 fell 0.3pc to 3,791, while the Nasdaq Composite index was steady at 11,251
North America's biggest bank, JP Morgan Chase, reported a 28 per cent fall in second-quarter profit to $US8.6 billion and suspended share buybacks.Chief executive Jamie Dimon warned that geopolitical tension, high inflation, waning consumer confidence, the withdrawal of stimulus, and the war in Ukraine, "are very likely to have negative consequences on the global economy sometime down the road".
"In the past hiking cycle, we have observed that inflation kept rising during the hiking cycle … It takes time for monetary policy to affect inflation."
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 inflation accelerates to 9.1pc, exceeding forecast againThe news underscores the relentless price pressures that keep the Federal Reserve on track for another big interest-rate hike later this month.
Read more »
US annual inflation rises 9.1 per cent, posting largest increase since 1981US annual consumer prices jumped 9.1 per cent in June, the largest increase in more than four decades, leaving Americans to dig deeper to pay for gasoline, food, healthcare and rents.
Read more »
US pledges to 'significantly step up our game' in Pacific IslandsKamala Harris is set to appear at the Pacific Islands Forum where she'll tell leaders the US will 'significantly step up our game' to counter China's growing influence in the strategic region.
Read more »