ASX

2022 - 9 - 14

Post cover — Image courtesy of "The Sydney Morning Herald"

Surging US inflation sparks fears of a global recession (The Sydney Morning Herald)

Surging inflation in the world's largest economy could lead to steeper interest rate increases in Australia, financial experts have warned.

The Commonwealth Bank’s head of fixed income and rates strategy, Martin Whetton, said markets now expected a sharper increase in US interest rates, but he did not think the US data meant Australia’s inflation would also be higher. “It’s US inflation, and it’s not the same stuff as Australian inflation. National Australia Bank chief economist Alan Oster said the data showed US inflation was hard to tame, but he thought markets were over-reacting. Nathan said the US Fed’s interest rate settings indirectly affected interest rates in other countries, including Australia. However, other economists talked down the implications of the US surge in inflation for Australia. We also have the issue of unemployment being so low, and potential wage inflation,” Nathan said.

Before the Bell: Australian stocks to edge up, Wall Street steady after ... (The Australian Financial Review)

On Wall St: Dow +0.1% S&P +0.3% Nasdaq +0.7% · In New York: BHP -0.3% Rio -0.9% Atlassian +2.7% · Tesla +3.6% Apple +1% Amazon +1.4% Netflix +2.8%.

Prices paid to US producers fell in August for a second month as fuel costs continued to retreat, reviving hopes that inflation may be nearing a peak. With the RBA’s August SoMP forecasts seeing unemployment around 3.4 per cent, such an outcome would still be consistent with a downshift in the pace of hikes.” Producer prices “may be on the brink of turning positive soon,” Wolff explained. Connect with Timothy on [[email protected]](mailto:[email protected]) Dalio said the Federal Reserve will respond by lifting rates and that will hit equities. He is the overnight markets editor and writes Before the Bell. That would make the Fed’s job on price pressures even harder by easing financial conditions. “Good drivers don’t increase their speed as they get closer to their destination.” The IEA’s forecast of demand growth this year of 2 million barrels per day (bpd) is mostly concentrated in the first half of the year and is set to fall to nothing in the fourth quarter. ASX futures were up 2 points to 6836 near 6.35am AEST, erasing earlier losses. “I estimate that a rise in rates from where they are to about 4.5 per cent will produce about a 20 per cent negative impact on equity prices (on average, though greater for longer duration assets and less for shorter duration ones) based on the present value discount effect and about a 10 per cent negative impact from declining incomes.” NAB sees “employment bouncing back by 40,000 after last month’s sample-affected read of -40,900 (consensus +30,000), and for the unemployment rate to fall a tenth to 3.3 per cent (consensus 3.4 per cent).

Wall Street steadies after worst sell-off in years, all eyes on ASX (9News)

The ASX dropped after the US revealed higher-than-expected inflation data, further prompting fears of greater interest rate hikes. High interest rates typically ...

The Nasdaq composite closed 5.2 per cent lower. The rate is currently in a range of 2.25 per cent to 2.50 per cent. Expectations for a more aggressive Fed have also helped the dollar add to its already strong gains for this year. The US dollar has been surging against other currencies in large part because the Fed has been hiking rates faster and by bigger margins than many other central banks. Higher rates hurt the economy by making it more expensive to buy a house, a car or anything else usually purchased on credit. On Tuesday, the Dow lost more than 1,250 points and the S&P 500 sank 4.3 per cent after Tuesday’s hotter-than-expected report on inflation. The Fed has already raised its federal funds rate four times this year, with the last two increases by three-quarters of a percentage point. In Seoul, the Kospi lost 1.6 per cent to 2,411.42. What is happening with the US rate rise? Hong Kong's Hang Seng index lost 2.3 per cent to 18,875.59 and the Shanghai Composite index declined 0.8 per cent, to 3,237.54. It echoed a US report on inflation at the consumer level Tuesday, which raised expectations for interest-rate hikes and triggered a rout for markets. Tensions between the US and China also weighed on markets.

5 things to watch on the ASX 200 on Thursday 15 September 2022 (Motley Fool Australia)

The Australian share market looks set to rise on Thursday after Wall Street rebounded. According to the latest SPI futures, the ASX 200 is expected to open the ...

[ASX: EVN](https://www.fool.com.au/tickers/asx-evn/)) and Regis Resources Limited ( [ASX: RRL](https://www.fool.com.au/tickers/asx-rrl/)) could have a difficult day after the gold price fell again overnight. [ASX: STO](https://www.fool.com.au/tickers/asx-sto/)) and Woodside Energy Group Ltd ( [ASX: WDS](https://www.fool.com.au/tickers/asx-wds/)) could have decent day after oil prices pushed higher on Wednesday night. [According to Bloomberg](https://www.bloomberg.com/energy), the WTI crude oil price is up 1.6% to US$88.70 a barrel and the Brent crude oil price is up 1.15% to US$94.23 a barrel. This implies potential upside of almost 24% for investors over the next 12 months. On Wall Street, the Dow Jones rose 0.1%, the S&P 500 climbed 0.35% and the NASDAQ pushed 0.75% higher. The benchmark index fell a disappointing 2.6% to 6,828.6 points. [ASX: FBU](https://www.fool.com.au/tickers/asx-fbu/)), battery materials miner IGO Ltd ( [ASX: IGO](https://www.fool.com.au/tickers/asx-igo/)), investment company Seven Group Holdings Ltd ( [ASX: SVW](https://www.fool.com.au/tickers/asx-svw/)), and mining giant South32 Ltd ( [ASX: S32](https://www.fool.com.au/tickers/asx-s32/)). According to CNBC, the [spot gold price](https://www.cnbc.com/quotes/[email protected]) is down 0.7% to US$1,706.60 an ounce. Rate hike bets continue to weigh on the precious metal. [ASX: NWS](https://www.fool.com.au/tickers/asx-nws/)) share price is great value according to analysts at Godman Sachs. [S&P/ASX 200 Index](https://www.fool.com.au/latest-asx-200-chart-price-news/) (ASX: XJO) had a day to forget and dropped deep into the red. According to the latest SPI futures, the ASX 200 is expected to open the day 3 points higher this morning.

Closing Bell: Crash, what crash? Small caps walk away unhurt as ... (Stockhead)

Wall Street crashed and the ASX 200 panicked, but on Wednesday the ASX Small Cap index showed its resilience to close just 1pc lower.

-14% It should be an interesting day of volatile trade when Wall Street opens in a few hours.. Wall Street chose to hope and then put money on the hope. And small caps give away a bare 1%. That’s right: Wall Street ends in calamity. straining like a legend against the chains that keep it from freedom. Look at it go! (It’s more like $59 billion and we had worse than that in June. On the floor. At 10am one can see (below) the benchmark fell out of bed and lay there. Firstly, the Benchmark ASX 200 is down about 2.5% on Wednesday. Not great, no.

This ASX company with 190% profit growth pays a MASSIVE ... (Motley Fool Australia)

Which Australian share is rewarding investors with 7% income driven by 45% revenue growth?

In a year when most non-mining stocks have been hammered, the Big River share price has shown remarkable resilience. “Building products manufacturer and distributor Big River was… [franked](https://www.fool.com.au/definitions/franking-credits/) yield.” [ASX: BRI](https://www.fool.com.au/tickers/asx-bri/)). [growing](https://www.fool.com.au/investing-education/growth-stocks/) and handing out a fat [yield](https://www.fool.com.au/definitions/dividend-yield/)? [incompatible within the same stock](https://www.fool.com.au/investing-education/buy-dividend-or-growth-shares/).

ASX LIVE: ASX rises, NZ GDP rises 1.7pc, Tyro appoints CEO (The Australian Financial Review)

Bloomberg News reported Tuesday that administration officials have discussed refilling the Strategic Petroleum Reserve, or SPR, when crude prices dip below $80 ...

As the second quarter started, soaring fuel and food costs continued to damp discretionary spending. In response, the government cut fuel taxes to provide relief for consumers. Still, with house prices falling and global uncertainty elevated, the prospect of weak growth and even recession in 2023 is rising. Daily covid cases peaked in late March and slowly began to decline. Gross domestic product rose 1.7 per cent from the first quarter, when it fell 0.2 per cent, Statistics New Zealand said Thursday in Wellington. Its bottom line profit was just 5.7 per cent higher at $49 million after including costs of restructuring, reducing floor space and asset impairments. Economists forecast a 1 per cent increase. Requests for extension were issued in June, July, August and September. As we said then, we anticipate that replenishment would not occur until well into the future, likely after fiscal year 2023.“ However, administration officials say that discussions of oil repurchasing are preliminary. Eventually, in 2010, a bill was passed to “restore the common understanding of the subordination of claims”; The Corporations Amendment (Sons of Gwalia) Bill 2010. In a statement released Wednesday, the Energy Department pointed to its previously released plans.

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