ASX to slip as rate bets pressure US tech stocks

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Australian shares are set to open lower as persistent inflationary pressures pave the way for higher US interest rates.

: It used to be the case that former Australian central bankers slipped into cushy jobs in banking. Guy Debelle has busted the stereotype.: Guy Debelle had to choose between his passion for fighting climate change, or potentially becoming the next RBA governor, writes John Kehoe.: The higher inflation number keeps the Federal Reserve on track to hike rates next week and presents a growing political problem for the Biden administration.

Peloton said it would explore various pricing models in select US markets, as the exercise bike company looks to attract more customers and return to profitability.Euro zone stocks fell on Thursday after the European Central Bank surprised markets by accelerating its exit from pandemic-related stimulus.

The German DAX and France’s CAC 40 fell almost 3 per cent each, while Italy’s MIB lost 4.2 per cent. The broader STOXX 600 index slipped 1.7 per cent. Calling Russia’s war against Ukraine a “watershed” moment for Europe, ECB officials pledged to slow bond buying from the start of May, and said they could halt the program as soon as the third quarter. They tried to temper that by making a subsequent interest-rate hike less automatic.

Investors took the more rapid withdrawal of asset purchases as a sign that rate rises are nearing, with money markets now betting on a quarter-point increase in October, compared with December earlier. They see two more hikes in the first half of 2023, taking the key rate to 0.25 per cent.

 

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