Australian stocks are likely to start the last quarter of this year lower, while the Reserve Bank is almost universally tipped to hold interest rates steady in tomorrow's board meeting.
This blog is not intended as investment advice, and should not be construed as an investment advice.
Data showed the personal consumption expenditures price index, including the volatile food and energy components, increased 3.9 percent for August, the first time in over two years it had fallen below 4 per cent. The Fed monitors the PCE price indexes for its inflation target of 2 per cent. The data revealed a 'better than expected but still elevated inflation picture,' said Eric Freedman, US Bank Asset Management's chief investment officer. The PCE forecast followed the recent hawkish long-term outlook for rates from the US Federal Reserve, which has rattled stocks as benchmark Treasury yields have risen to 16-year highs. It looks like it may be a bad start, with ASX futures falling. A mixed session happened on Wall Street on Friday, just after it had gathered a mixed session last Friday.
The S & P 500 and Nasdaq posted their largest monthly percentage drop of the year, while all three major indexes saw their first quarterly declines in 2023.