Australian shares are poised to edge higher at the open. Wall Street was mixed as investors sought to assess what the Federal Reserve’s next rate move might be.US annual consumer prices jumped 9.1 per cent in June, the largest increase in more than four decades.In New York: BHP +0.5% Rio +1.3% Atlassian +1.4%“It is hard to be a buyer of stocks as the risks of the Fed sending this economy continue to grow,” Oanda’s Edward Moya said in a note.
The Bank of Canada lifted its key interest rate by a full percentage point, a surprise move that supercharges efforts to withdraw stimulus amid fears four-decade-high inflation is becoming entrenched. “We believe many investors spent last night reading the case and ultimately concluded that this Game of Thrones battle in court will result in some version of a Twitter win.”
We preliminarily forecast core PCE inflation will increase 0.67 per cent on the month in June, and headline up 1.06 per cent. We will finalise this forecast after the PPI data is released next week.”: “Looking into the data, inflation remains embedded within multiple segments of the economy even when stripping away food and energy prices.
“The Fed’s ‘unconditional’ commitment to lower inflation will lead officials to continue to aggressively front-load rate increases. We see the Fed raising the fed funds rate by 75bps at each of the July and September policy meetings since inflation is poised to remain sticky and elevated.”Advertisement