Federal Reserve

BCA Research paints a bleak picture of the US economy after conditions deteriorate.

Late July news of the Federal Reserve (Fed) increasing interest rates another 0.75% and a second negative quarter of economic growth (GDP) has created an uncertain environment for investors.

Groundhog Day, markets down, unemployment falls, ARB’s run continues The ASX 200 (ASX: XJO) weakened another 0.3% today as Victoria plunged into its fifth lockdown and the outbreak continued to extend in NSW. Just two sectors finished higher, materials up 1.4% and utilities, 0.7%, with the latter benefitting from another 6.3% jump in Spark Infrastructure Group (ASX: SKI). The…

Strong day for the ASX, private equity buys into Challenger, NSW lockdowns continue  Every sector barring energy and industrials finished higher on Wednesday, with the ASX 200 jumping 0.9%. Buy now pay later groups were among the top performers, with Zip Co Ltd (ASX: Z1P) and Afterpay Ltd (ASX: APT) adding 6.5% and 4.5%, respectively. Challenger Financial Group (ASX: CGF) was the…

Markets were caught off-guard this week by news that the Federal Reserve had become more hawkish than expected. The issue that gained all the headlines was the fact that Federal Open Market Committee (FOMC) members now expected interest rates to increase twice before the end of 2023; a year early than expected. Further, 13 of…

ASX dragged down by US sell off, CBA sells general insurance arm, Boral out of the US The ASX 200 (ASX: XJO) followed global markets lower to begin the week, falling 1.8% after being as much as 2% lower during the session. Among the most significant detractors was the Commonwealth Bank of Australia (ASX: CBA), with Australia’s largest company…

Fifth straight weekly gain, tech back in favour, commodities tank, AUD weakens The ASX 200 (ASX: XJO) finished 0.1% higher on Friday as markets continued to digest this week’s change of heart from the Federal Reserve.  The IT sector overcame valuation concerns to jump 3.5% higher on Friday and 6.1% over the week. Leading the market was Afterpay (ASX: APT)…

Rough day as rate hike hits, Challenger, Seven, Coles offer market updates The ASX 200 (ASX: XJO) finished down 0.4% on Thursday in what some are calling a sell-off after news that the Federal Reserve may hike interest rates earlier than expected, in 2023. Markets took this with a grain of salt, not selling off heavily, ending more focused…

ASX records continue despite mining sell off, energy stronger, lithium deals continue The ASX 200 (ASX: XJO) finished at another record, adding 0.1% on Wednesday despite weakening throughout the day. Most sectors finished higher, led by the energy sector, up 1.5%, with the materials and IT down 1.6% and 0.4%, respectively. It was bad news for those…

Inflation has dominated the headlines in May, with one higher-than-anticipated print in the US triggering a broad consensus that the Federal Reserve is wrong, and will be forced to act far quicker than expected. Yet as with most economic “consensus,” it’s important to look beyond the headlines. This is what respected government bond manager Jamieson…