Australian Bond Exchange Weekly Newsletter 2 December 2022
- In the US, suggestions that the pace of FED rate hikes to slow down as soon as December 2022.
- Federal Reserve suggested there is a possibility of inflation decreasing next year; on the back of this comment financial markets rose.
- In Australia, the ASX200 rose higher 0.43% to 7284.
- CPI release for October shows the rate rising to 6.9%.
Overnight we saw a light rally in the US financial markets with the Dow Jones rising to 2.18%. The S&P500 also rose sitting at the end of the session at 4080; up 3.1%.
The market rebounds were on the back of feedback from FED Reserve Chair Jerome Powell who stated that “The time for moderating rate increases may come as soon as December”. The bond market also took the news positively with bond prices rallying and yields falling.
The US market rally and sentiment carried over to Australia with an early rally and by end of that day the S&P/ASX200 ended at 7301.50, easing to 0.7 per cent for the week.
ABS figures have shown a 0.2% dip in CPI on the back of decreasing fruit and vegetable prices, which has provided relief in the inflation wave we are currently seeing.
Moving on to interest rates, a rate rise of 0.25 basis points this coming Tuesday is tipped by the market. ABE will be watching the rate decision and will bring commentary on this next week.
Contact us if you have any questions or would like any assistance.
Copyright © 2022 Australian Bond Exchange Pty. Ltd. (“ABE”). (ABN 73 605 038 935, AFSL 484453)
The information and any advice provided in this newsletter has been prepared without considering your objectives, financial situation or needs. Because of that, you should, before acting on the advice, consider the appropriateness of the advice, having regard to those things. You should obtain the relevant appropriate document for any product mentioned and consider its contents before making any decision.