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AU Financial Review
a day ago
- Business
- AU Financial Review
ASX to rise, Wall St records reset
Australian shares are set to open higher, reflecting enduring optimism on Wall Street that helped lift both the S&P 500 and Nasdaq Composite to record highs. A key reason for the latest move higher in US equities is a positive start to the June quarter reporting season. 'We expect a more dovish tone from next week's [Federal Open Market Committee's] statement and [chairman Jerome] Powell's press conference,' veteran market strategist Ed Yardeni said in a note. 'If so, that would continue to fuel the bull market in stocks, especially since the Q2 earnings reporting season should continue to beat expectations. The blended (actual/estimated) S&P 500 earnings per share growth rate edged up to 4.3 per cent year-over-year last week. It should be closer to 8.0 per cent when all the results are in.' Market highlights ASX futures are pointing up 29 points or 0.3 per cent to 8677. All US prices near 2.30pm New York time. Today's agenda The RBA will release the minutes from its latest meeting on Tuesday at 11.30am. NZ trade balance data will be released at 8.30am. Top stories Gas is in as renewables industry adopts new playbook | In a detailed letter to its members, the Clean Energy Council says it must be realistic about gas and work harder to secure support for regional wind and solar projects. Chinese car brands all the rage, and on track to dominate by 2035 | Forecasting conducted for car dealerships suggest vehicles manufactured in China will make up 43 per cent of sales within a decade in a major market shift. No longer a 'state issue': Feds stump up $14 million for marine crisis | The federal government has pledged millions to help SA deal with its marine catastrophe, but experts say much more is needed. | From Tim Tams to Rexona, the ACCC's case against Woolworths and Coles will hinge on 24 grocery items.
AU Financial Review
07-07-2025
- Business
- AU Financial Review
ASX to fall, Wall St tumbles on renewed Trump trade wars
Australian shares are poised to open lower after US President Donald Trump threatened 25 per cent tariff rates on both Japan and South Korea as of August 1, leading US equities lower. The Dow Jones Industrial Average tumbled near 650 points near 2.30pm in New York. The president sent each nation a letter detailing his plans; he's expected to send about 12 letters on Monday (Tuesday AEST). At a White House briefing, his spokeswoman said the deadline for trade deals will formally later on Monday be pushed to August 1 from July 9. The tariff rates for Japan and South Korea are in line with what Trump initially proposed. In a Truth Social post, he warned each nation not to retaliate. Market highlights ASX futures are pointing down 32 points or 0.4 per cent to 8541. All US prices as of 2.30pm New York time. Today's agenda The RBA meets on Tuesday and it's widely expected that policymakers will vote for a 25 basis point cut. Top stories Billions for Made in Australia program 'may look protectionist' | The Productivity Commission has warned the government that its subsidies for domestic industry could be considered protectionism and suggested slashing tariffs on 300 imported goods. Trump to levy 25pc tariffs on Japan, South Korea in August | The US president warned the nations against retaliation in his letters to them, saying any actions would be met with a response from the US. Why the RBA's rate cuts won't fuel essential investment | Lower interests rate will not be enough to rev the engines of Australia's economy. The reform roundtable cannot come quickly enough, writes Paul Brennan. | New research suggests a 40 per cent fall in analysts dialling in. In Australia, veterans say it's down to fewer, more junior, sell-side researchers.
Yahoo
15-04-2025
- Business
- Yahoo
RBA reveals why it kept rates on hold
Australian households are finding a way to pay off their mortgages and can wait a little longer for an interest-rate cut, the RBA minutes show. According to the latest release of the RBA's minutes of monetary policy, a rate cut was not even discussed, despite the central bank calling the current conditions 'restrictive'. 'While financial pressures remained pervasive across the Australian community, they had generally eased a little,' the RBA board members said. 'The share of borrowers who had fallen behind on their mortgage payments had stabilised at around pre-pandemic levels, and most mortgagors had maintained large liquidity and equity buffers.' The RBA said the overall economy and households were in good shape, largely thanks to a combination of a rate cut in February, lower taxes, higher wages and falling inflation. Even lower income borrowers are finding a way to get by with the number of mortgages in arrears continuing to fall. But the central bank conceded there might be vulnerabilities in the overall financial system if households responded to interest rate cuts by taking on more debt. 'While lending standards were currently sound, historical experience both in Australia and abroad suggested that periods of lower interest rates can coincide with riskier borrowing activity, a rapid increase in house prices and, at times, a relaxation of lending standards,' The RBA board said. 'Historically, borrowing by investors had been particularly sensitive to changes in conditions in the mortgage market.' It also pointed out debt servicing payments remain at the highest level since 2012 as a share of disposable income, with households trying to get ahead on their mortgage payments. During its March 31 to April 1 meeting, the RBA board left interest rates unchanged at 4.1 per cent, largely in line with market expectations. It follows a rate reduction of 25 basis points when the central bank met in February. Despite holding interest rates, the RBA said it expressed caution around increasing tariffs, and the potential fallout between the US and China. The RBA's meeting was the day before US President Donald Trump announced his reciprocal tariffs on nearly 75 countries, dubbed 'Liberation Day' for Americans, which sent the financial markets into a global sell off. 'In finalising the policy statement, members emphasised the need to be cautious and alert to the evolving economic outlook, and the importance of future decisions being guided by the incoming information and the assessment of risks,' the RBA meeting minutes said. 'They agreed that sustainably returning inflation to target is the board's highest priority and that it will do what is necessary to achieve that outcome.'
