Global bonds and stocks dived on Tuesday and the Australian dollar struggled near its lowest level in a month after surprisingly high US inflation stoked concerns the Federal Reserve will push through steeper and faster interest rate rises and risk plunging its economy into a recession.
“The RBA [Reserve Bank] hasn’t seen the high inflation numbers that we’ve seen elsewhere around the globe, but the RBA and the market may very well price in a sharper hiking cycle, and that could also lead to inversion in the Aussie curve,” said Daniel Siluk, portfolio manager at bond fund Kapstream Capital.
“More worryingly for the Fed is inflation expectations also appear to be becoming de-anchored,” said Tapas Strickland, director in economics and markets at NAB, citing the well-followed University of Michigan survey showing price growth expectations at 3.3 per cent, the highest since 2008. “While we still expect spending growth to remain strong in the near-term – underpinned by the reopening of the economy – the outlook over the next year now has more material headwinds,” said George Tharenou, UBS chief economist of Australia.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
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.
Women who guided us through the pandemic honoured with a prestigious titleMary-Louise McLaws spends her days being cared for by her family and friends. It is a stark contrast from what she was doing before she received her cancer diagnosis earlier this year. Great, but it's spelled PLANDEMIC. I got a great joke about covid but 99.9 percent of you won't get it. Just for doing what they are paid to do their job.
Source: abcnews - 🏆 5. / 83 Read more »
US senators reach bipartisan gun control deal after recent mass shootingsProposal does not ban assault weapons or raise age required to buy them to 21, but if enacted it would come after years of stalemate US senators agree to throwing marshmallows at gun problem.
Source: GuardianAus - 🏆 1. / 98 Read more »
Stars align for Cuban migrants as record numbers seek better life in USThe journey to America, often via Nicaragua, has become more viable – and many are taking their chances at the border
Source: GuardianAus - 🏆 1. / 98 Read more »
ASX to plunge more than 4pc, US stocks enter bear marketAustralian shares are set to drop sharply at the open, resetting lower in line with falls overseas. Bitcoin sheds 15 per cent. $A below US69.30¢.
Source: FinancialReview - 🏆 2. / 90 Read more »
Shares tumble as investors respond to US inflation warningHighest pace of US consumer price increases in four decades indicates swifter path of monetary tightening ahead of central bank meeting.
Source: FinancialReview - 🏆 2. / 90 Read more »
Dimon: EU being ‘torn apart’ by energy crisis and US must step inJPMorgan Chase CEO Jamie Dimon says the US must do more to ease Europe’s energy crisis, adding he is not convinced the Federal Reserve can engineer a soft landing. we are being ripped off by gas miners why should we worry about Euro gas? Texas n Oklahoma should frack more
Source: FinancialReview - 🏆 2. / 90 Read more »