News

Fed Chair Jerome Powell held interest rates steady, as expected, and signalled potential cuts later this year.

Closer to home, rising expectations of further interest rate cuts drove Australian shares higher, as the Reserve Bank’s minutes from its June meeting revealed the possibility of two rate cuts before the end of the year

Global markets​ were higher overnight, with gains on Wall Street  with Facebook, Apple and Amazon leading the way, as investors awaited a key Federal Reserve meeting that is expected to lay the groundwork for an interest rate cut later this year. ​

Markets are already pricing in a 25bp rate cut in July. Our view is that this could be setting up for disappointment.

In the latest podcast, the majority of the episode is about short selling, and more educational this week.

Data showed US consumer prices barely rose in May, pointing to moderate inflation that together with a slowing economy increases the chances of the Federal Reserve to cut interest rates this year.

Closer to home, the Australian share market hit a new 11-year high, with the local market making strong gains following what was a surprise pro-market election result last month.

Global markets started the week higher after the United States dropped plans to impose tariffs on Mexican goods.

It generally appears as though “bad news” is “good news” once again given expectations for the US Fed to become more supportive by lowering interest rates.