We are a proud member of the Financial Services Online network!
Connect with us on your favourite social media platform for the latest financial news, views, tips, tricks, resources and information.
Market Resilience Amid Strong Quarterly Inflation Data
Market Resilience Amid Strong Quarterly Inflation Data
The trajectory of the market took a turn upon the recent announcement from the Australian Bureau of Statistics, which indicated a more robust inflation measure of one percent for the March quarter, surpassing forecasts which suggested a 0.8 percent rise. This unexpected inflation data shifted the odds of interest rate cuts considerably lower than previous market expectations.
Revised calculations reveal only a 19 percent likelihood that the Reserve Bank of Australia (RBA) will slash interest rates in the final session of the year, a significant drop from Tuesday's 80 percent prediction. Experts from respected firms, such as Citi and Westpac, have readjusted their expectations for policy adjustments in light of the fresh economic indicators.
No longer anticipating a September adjustment, Westpac's Luci Ellis took note of the inflation dynamics, delaying the anticipated reductions to after the Reserve Bank's November rendezvous. The Australian Dollar experienced an uptick against the US dollar, hitting a peak of US65.25 cents amidst these developments.
Shifting towards the Australian bond market, yields for three-year government bonds rallied by 11 basis points, achieving a year's peak at 4.04 percent. Within the exchange, sector performances varied. Utilities saw the largest descent, dipping by 0.6 percent, while financial services led counter-movements with a 0.4 percent advance.
Outcomes also varied among resource majors, with disparate movements among leading mining operatives. BHP declined by 0.6 percent, Rio Tinto fell slightly by 0.2 percent, and Fortescue Metals Group gained 0.7 percent, regardless of its reported slide in iron ore shipments that didn’t quite meet analyst predictions.
- Commonwealth Bank of Australia: +0.4% to $115
- National Australia Bank: +0.5% to $34
- Australia and New Zealand Banking Group: +0.3% to $28.54
- Westpac: Leading the pack with a +0.9% surge to $26.19
Elsewhere in the financial sector, investment firm Perpetual took a hit, tumbling 3.5 percent after reporting substantial outflows. Yet the market holds its breath for furniture titan Nick Scali, as it paused trading ahead of significant announcements about its strategic international expansion plans.
Notable decreases also cropped up for Lynas Rare Earths and Kogan, down by 0.3 percent and a significant 27.5 percent respectively, the latter being affected by a sales reduction despite upticks in profits and margins. Lastly, murmurs of mergers involving Cleanaway were put to rest, with share values toppling by 10 percent due to clarified speculation, making it one of the day's sharpest fallers.
Published:Tuesday, 30th Apr 2024
Source: Paige Estritori
Share this news item:
| Impact of Budget on Borrowers: A Deep Dive 20 May 2024: Paige Estritori Concerns are mounting among financial experts that the latest federal budget could prompt a rise in interest rates, adding to the challenges faced by borrowers. - read more |
| Rookies in Real Estate: Albanese Budget Misses First-Time Buyers 18 May 2024: Paige Estritori The Albanese government's latest housing budget injects billions into housing, aiming to energize the construction of new homes. However, an important demographic has been left disappointed: first-time home buyers who feel sidelined amidst these changes. - read more |
| Investing in Growth: How to Finance Your Business Expansion Strategically Australia's dynamic SME landscape is ever-evolving, constantly presenting new opportunities and challenges for today's entrepreneurs. Growth is not just a goal but a necessity for these small and medium enterprises to thrive in the competitive market. As these businesses stand on the cusp of expansion, it becomes critical to recognize the indicators for growth and to approach this next stage with a robust strategic plan. - read more
|
| Creative Strategies to Fund Your Franchise Without Breaking the Bank Embarking on a franchise venture holds the promise of a prosperous future, but all too often, prospective franchisees are confronted with the substantial challenge of securing adequate funding to power their entrepreneurial dreams. With traditional financing routes frequently requiring significant up-front capital, the hurdle of funding becomes a formidable barrier for many. It is for this very reason that we must shine a spotlight on the validity of creative funding strategies that exist outside the conventional banking framework. - read more
|
|
Avoid the Common Pitfalls: Expert Advice on Startup Loan Applications in Australia Embarking on a startup journey is an exhilarating challenge that requires not just a brilliant idea, but a solid foundation of financial support to turn that idea into reality. Finding the right funding can be a make-or-break moment for many startups. Here, preparation is more than just a good practice; it's the backbone of any successful loan application. - read more
|
|
|
Investing in Growth: How to Finance Your Business Expansion Strategically Australia's dynamic SME landscape is ever-evolving, constantly presenting new opportunities and challenges for today's entrepreneurs. Growth is not just a goal but a necessity for these small and medium enterprises to thrive in the competitive market. As these businesses stand on the cusp of expansion, it becomes critical to recognize the indicators for growth and to approach this next stage with a robust strategic plan. - read more
|
a loan that is granted for personal use, normally unsecured and granted by a lender on the borrower's integrity and capacity to repay