Better news: The Australian dollar had its best week in more than two months, closing the week up 1.3 percent.
“General [the Australian dollar] is still weak, but Australian exports are still doing well… that helps the Aussie dollar stay firm despite lower interest rates in the US.”
Tagliaferro said stock market volatility will continue for some time to come.
“Looking at 2023, it’s a pretty uncertain environment. No one knows exactly when inflation will peak… [central banks] want to avoid a hard landing – the jury is curious if that can be achieved,” said Tagliaferro.
ANZ maintained expectations that the Reserve Bank would raise interest rates by 25 basis points in November, despite stalling employment growth.
The bank’s researchers also expect the government’s first budget, due on Oct. 25, to focus on long-term fiscal challenges, with the main measure being the expansion of paid parental leave. They also expect modest measures for flooding and cost of living.
Meanwhile, Medibank Private has requested a voluntary suspension of its stocks until next Wednesday as the insurer continues to cooperate with federal law enforcement following a cyber attack last Wednesday. The company’s trading freeze is set to end today.
US stocks gave up early gains to close lower on Wall Street as markets remain volatile for direction.
The S&P 500 closed 0.8 percent lower, the Dow Jones lost 0.3 percent and the Nasdaq fell 0.6 percent. The ASX fell 1 percent on Thursday.
Treasury yields continued to climb to multi-year highs, pushing up rates on mortgages and other loans. The 10-year Treasury yield rose from 4.14 percent to 4.20 and is at its highest level in 14 years. The yield on the two-year Treasury, which tracks expectations for future actions by the Federal Reserve, rose from 4.56 percent to 4.57 percent.
Tweet of the day:
Quote of the day: “Don’t mess with bond vigilantes,” said Gordon Shannon, portfolio manager at TwentyFour Asset Management.
For manyLiz Truss’ 44-day stint as British Prime Minister highlighted the meaningful power that traders and investors now have in influencing the outcome of policy and politics.
You may have missed: Elon Musk told potential investors he plans to reduce about 75 percent of Twitter’s 7,500 employees to a “skeleton staff” of 2,000 as part of his acquisition of the company. according to the Washington Post.
According to internal documents, the social media giant was already preparing to lay off 25 percent of its workforce by the end of next year. In response to the news, Bloomberg reported that an internal memo had been circulated within the company stating that there were “no plans for company-wide layoffs”.
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