SINGAPORE - Asian shares fell and bond yields spiked on nervousness about inflation on Thursday, while the yen's slide past 160-per-dollar had currency traders bracing for Japan to step in and steady it.
"Australia's inflation is broadly at the highest levels in the developed world now," said CommSec senior economist Ryan Felsman, with the market re-pricing risks of further hikes. Ten-year Australian government bond yields are above U.S. 10-year yields for the first time since February and the Australian dollar has been steady in the face of broad U.S. dollar gains elsewhere.
The dollar index is up 1.3% for the month and almost 1.5% for the quarter as expectations for rate cuts in the U.S. have been pushed back by stubborn inflation and strong economic data. The yen, which slumped to a lifetime low 171.79 per euro on Wednesday was fragile at 171.57 in Asia and at 160.7 per dollar was weaker than levels which prompted Japanese intervention in April and May.
In commodity markets Brent crude futures fell 0.4% to $84.92 a barrel, a 3% drop for the quarter so far. Gold slipped as yields rose and traded at $2,297 an ounce.This dividend stock is sure to benefit from ongoing cuts in the key interest rate and is already seeing some major opportunities ahead. The post 1 Dividend Stock to Buy if the Bank of Canada Keeps Cutting Rates appeared first on The Motley Fool Canada.