Introduction of RBNZ Rates
Following choppy trading in the morning, Australian shares have slightly increased as new data reveal that wage growth is now falling further RBNZ Rates behind and the rising cost of living. For the Reserve Bank of Australia (RBA), wage growth is a critical indicator when deciding whether to raise rates. Some economists believe that today’s data will strengthen the case for a rate increase of less than 50 basis points (either 40 basis points or 25 basis points).
- The most recent wage price index figures were below what was anticipated.
- Despite a jump in first-half profit, Santos shares declined, and CSL’s stock took a dive after revising its profit forecast.
- As the S&P 500 and Dow closed higher yesterday, global stocks remained stable.
The Rise in RBNZ Rates
However, the Reserve Bank of New Zealand declared a fourth straight 0.5-point rate increase to 3%. Although the increase was expected, Imre Speizer, head of NZ market strategy at Westpac, referred to the tone of the best RBNZ rates statement and a 15-basis point increase in the official cash rate track to 4.10 percent as reasons why the announcement was “definitely more hawkish than expected.”
- “A very tight labor market and wage inflation are obviously of greater concern to them.
- A significant recent development is that “said Mr. Speizer.
- At 2:29 PM AEST, the benchmark ASX 200 in Australia was up 10 points, or 0.2%, to 7,116.
Between the positive and negative territory, the benchmark fluctuated in Early trading saw the benchmark fluctuate between positive and negative territory, indicating the cautious market stance in advance of Thursday’s release of the July jobs report.
Santos profit buoyed by higher LNG prices
As a result of an increase in liquefied natural gas (LNG) prices following Russia’s invasion of Ukraine, Santos reported a four-fold increase in the first-half underlying earnings.
CSL Annual Profit Drops
S&P 500, Dow higher
- Home Depot outperformed forecasts for the most recent quarter of sales, and Walmart predicted a lesser decline in full-year earnings than was originally anticipated.
- The S&P 500 increased by 0.19 percent to 4,305.2, while the Nasdaq Composite decreased by 0.19 percent to 13,102.55. The Dow Jones Industrial Average increased by 0.71 percent to 34,152.01.