Stocks fall globally as US Fed hints at 50bp rate hike if inflation persists

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The Australian share market is set to follow Wall Street and European stocks down today.

Stocks are sliding globally as the US Federal Reserve hints at rates hikes as soon as the war in Ukraine eases.Apple, Microsoft, Amazon and Tesla contributed to the tech-heavy sector's decline.At 7:45am AEDT, ASX 200 futures were marginally down.

The Fed's latest meeting notes showed many members of it refrained from voting for a rate hike at the March meeting only because of Russia's invasion of Ukraine."Many members viewed one or more 50bp rate hikes could be appropriate at future meetings if high inflation persists," CBA noted this morning.The Australian economy is also battling price hikes, however the Reserve Bank only this week decided to keep rates at historical lows.

"USD fluctuated modestly as market participants digested the FOMC's March meeting minutes," CBA said."Weaker oil and equity prices weighed on AUD."

 

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I’m seeing an opportunity for purchase of cheaper stocks…

Rate rise isn't going to stop inflation.....

Well done Fed! US learnt it from 2008 and has got its economic policy sorted, unlike the bubble created by RBAInfo

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Source: FinancialReview - 🏆 2. / 90 Read more »