News

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. 

Global markets ​generally continued to trend higher overnight on optimism that the US might delay imposing tariffs on Mexico next week.

Australian ​economic growth​ (GDP data)​ in the first quarter of the year was weaker than forecast, with growth for the quarter printing at 0.4​%​, below expectations of 0.​5%.

Closer to home, the Reserve Bank of Australia cut the cash rate by 25 basis points (quarter of a per cent) to a record low of 1.25%.