ASX Lower After US Fed Interest Rates Caution, RBA Inflation Update


US Federal Reserve expresses doubts about sufficient interest rates to control inflation, leading to Wall Street and ASX decline. RBA prepares to release inflation update after recent rate hike.

US Federal Reserve Caution on Interest Rates

The US Federal Reserve chair, Jerome Powell, expressed concerns about the adequacy of interest rates to combat inflation, leading to a decline in Wall Street and ASX at the start of trade.

Effects on ASX and RBA’s Inflation Update

The ASX opened lower following the cautionary comments from the US Federal Reserve. Meanwhile, the RBA is set to release its latest economic update, focusing on inflation forecasts after a recent rate hike.

REA Group’s Profit Surge After Strong Property Market Performance

REA Group, the property group behind, reported a 13% increase in adjusted earnings and a 12% rise in revenue, attributed to a stronger than typical winter in Sydney and Melbourne.

RBA Analyzes Record Population Growth and Inflation

The RBA detailed the impact of record population growth on inflation, suggesting that the supply and demand effects have been broadly neutral overall and have alleviated labor shortages in specific sectors.

Xero’s Profitability After Workforce Reduction

Cloud-based accounting software firm Xero achieved profitability after implementing workforce reductions, demonstrating the positive impact of tough business decisions.

Market Performance and Ransomware Attack on China’s Largest Bank

The ASX opened lower, and the US Treasury market experienced disruption due to a ransomware attack on China’s largest bank, the Industrial and Commercial Bank of China.

Wall Street’s Long Winning Streak Snapped

Wall Street closed lower, ending the longest winning streak for the S&P 500 and Nasdaq in two years, with Treasury yields and Fed chair’s comments contributing to the decline.

Optus Customers Seeking Compensation After Outage

Optus customers affected by a nationwide outage are seeking compensation, with the telco offering extra data instead of financial reimbursement, leading to dissatisfaction among some customers.

Bank of Canada Predicts End of Ultra-Low Interest Rates Era

The Bank of Canada anticipates the end of the era of ultra-low interest rates and warns households and businesses to prepare for higher borrowing costs than experienced in recent years.

Overview of the Financial Markets

The financial markets show a mixed performance, with the ASX, Wall Street, European markets, and key commodities experiencing both gains and losses.