For the ASX 200, the technology sector fell as much as 2 percent on Monday, but most sectors were lower, apart from energy, which received a strong boost due to the increase in oil prices over the weekend. Oil recovered after Saudi Arabia showed confidence in oil demand prospects by raising its crude oil price for Asia.
China offered more room for stored optimism, as data showed that Chinese travel and spending have begun to slowly improve as the country lifts some of its stricter restrictions on coronavirus.
Magellan Financial Group recorded the biggest drop, up 14 percent to a new multi-year low, after presenting its latest fund update in management that revealed investors had withdrawn another $ 3.6 billion during in May.
Locally, investors are preparing for a direct hit of tomorrow’s RBA meeting, where the only question is: how much will rates rise.
Bloomberg surveyed 22 economists and the only disagreement is whether it will be a 25 basis point increase, a 40 basis point increase or 50.
Steve Miller, investment strategist at Grant Samuel Funds Management, said a 40-50 basis point increase was a possibility and would show that the RBA has learned the lesson from central banks abroad: to act soon after Demonstrable inflation surprises is preferable to later.
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“This is the‘ time-saving new time-saving ’approach to tariff increases,” he said. “I’m not sure the RBA is still there,” Miller added.
U.S. equities fell broadly and threw major indices in the red during the week as Wall Street focused on the still-strong decline in the U.S. labor market.
A report showed that employers hired more workers last month than economists expected. While this is a good sign for the economy amid worries about a possible recession, many investors saw it holding the Federal Reserve on its way to aggressively raising interest rates. These moves would slow the economy in hopes of ending high inflation, and the Fed runs the risk of causing a recession if it moves too fast or too far.
Quote of the day: “We don’t see it being viable this decade … it could be until the 2040s before it’s competitive.” Brandon Craig, BHP Director of Revenue, on the prospect of green steel. He believes that the cost of hydrogen will have to be reduced to $ 1 per kilo to make green steel viable without emissions.
Post of the day:
You may have missed: Tabcorp received a welcome boost after finally resolving the legal battle with Racing Queensland over the calculation of rates to be paid by Tabcorp after the introduction of the point of consumption tax in Queensland in 2018. Tabcorp will pay Racing Queensland and the Queensland Government a combined total of $ 150 million (excluding GST).
with AP