Australian shares are expected to drop sharply, after US investors contended with data that suggested the Federal Reserve would tighten rates further.
-2.3% to $US111.65 a tonneFresh US data on Thursday pointed to a resilient economy, driving concern that the Fed has a longer way to redress price growth. Initial jobless claims rose less than forecast in the week ended December 17, underscoring the strength in the labour market. Third-quarter gross domestic product was revised to 3.2 per cent – compared with a previously reported 2.9 per cent advance – on firmer spending.
“It’s a bit interesting to see markets move on a third release of GDP. We’ve gotten this data a couple of times already, they were pretty big revisions,” Citigroup economist Veronica Clark said on Bloomberg Television. “Markets are hoping to see softer inflation now and we’re not getting it.” Bearish comments from investor David Tepper, who told CNBC he’s “leaning short” on US equities next year because of global tightening, added to the risk-off sentiment on Thursday.P 500’s large decline this month contrasts with an average 1.5 per cent December gain since 1950, providing sidelined global investors with plenty of “dry powder” to put to work, according to analysts at SEB.
Concerns are growing that Japanese investors could be persuaded to bring home some of the trillions of dollars they have stashed in foreign stocks and bonds as the yen and local bond yields rise after this week’s hawkish pivot from the Bank of Japan. That could further lift global borrowing costs and drag on already cooling economic growth, with eurozone bonds seen especially vulnerable.Germany’s 10-year yield on advanced five basis points to 2.36 per cent.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
ASX rises 0.5pc; 29Metals crashes 22pcThe S&P/ASX 200 Index added 0.5 per cent to 7152.5. ReadyTech fell 11 per cent to $3.50.
Read more »
ASX set to rise after Wall Street holds on to gainsAustralian shares are expected to open higher after US investors digested better-than-expected earnings reports. The Australian dollar was up 0.2 per cent.
Read more »
ASX set to rise after Wall Street holds on to gainsAustralian shares are expected to open higher following US investors digesting better than expected earnings reports. The Australian dollar was up 0.4 per cent.
Read more »
ASX to rally; US consumer confidence at eight-month highFutures have shares up 0.7pc at the open; US consumer feeling most confident in 8 months; Nike rallies 13pc in ordinary trading after second-quarter numbers; follow here.
Read more »
Live: ASX to rise as Wall Street jumps with help from Nike, FedEx and consumer sentimentA rally on Wall Street is likely to send Australian stocks higher, while oil prices jump after data suggests a larger-than-expected draw in US crude stockpiles. Follow the latest updates in our live blog.
Read more »
ASX to rally; PEP withdraws ReadyTech offer, Kogan in online furniture dealFutures have shares up 0.7pc at the open; US consumer feeling most confident in 8 months; Nike rallies 13pc in ordinary trading after second-quarter numbers; follow here.
Read more »