Global Money Chases World's Hottest Major Stock Market in Korea
Just this month, policymakers voted in favor of pivotal law changes to make board members legally accountable to all shareholders. They are now focusing on the next wave of reforms — including improvements to the voting system for selection of board members, and reducing treasury stock holdings — all with the goal of reining in the nation's many family-run conglomerates, or chaebols.
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an hour ago
- Yahoo
RBA interest rate cut 'all but nailed on' after ABS reveals key inflation data: 'Pull the trigger'
Homeowners could soon see another slice of mortgage relief delivered in just a few weeks after positive inflation data was released. The Australian Bureau of Statistics (ABS) revealed trimmed inflation, which is the metric the Reserve Bank of Australia (RBA) closely follows, fell from 2.9 per cent to 2.7 per cent, the lowest level since December 2021. That puts inflation in touching distance of the Board's desired midpoint of 2-3 per cent, and could help secure an interest rate cut at its August 11 and 12 meeting. Canstar's director of data and insights, Sally Tindall, told Yahoo Finance this result is the confirmation the RBA "has been waiting for". 'This, combined with the surprise lift in Australia's unemployment rate, should be more than enough for the RBA to pull the trigger on the third cash rate cut for the year," she said. RELATED Dark $95,420 property cloud looming for new buyers Centrelink pension warning for 4.3 million Aussies facing super nightmare Aussie couple reveal 'cheaper' $400,000 housing solution 'Inflation is cooling in key categories that have been cause for concern for the central bank. Services inflation is still too high, at an annual rate of 3.3 per cent, but it's now at the lowest level since June 2022. Canstar found a homeowner with a $600,000 mortgage would save $90 per month with a 0.25 per cent cut next month. That goes up to $150 per month with a $1 million mortgage. eToro market analyst Josh Hilbert said this latest data point is making it "harder" for the RBA to keep holding interest rates. "After the surprise pause in July, today's data means an August rate cut is all but nailed on," he added. He said markets have priced in a 93 per cent chance of a cut next month, and cited how cost-of-living pressures on homeowners would mount more pressure on the RBA to provide some relief. But he hinted there might not be much more movement in the cash rate for several months."The RBA's inflation fight looks all but won, and the board has a narrow window to move before downside risks mount further," Gilbert said. "The RBA's measured approach so far means that following a cut in August, we may only see one further cut until the end of the year. Nonetheless, rates are coming down, and that's a win for equity markets and mortgage holders." Commonwealth Bank (CBA), Westpac, NAB and ANZ all believe the RBA will cut interest rates next month. But they're divided on how many more there will be in this cutting cycle. CBA and ANZ predict there will be two additional cuts coming, which would bring the cash rate down to 3.35 per cent. NAB thinks there will be three, while Westpac is the outlier with four predicted reductions in the cash rate. That would bring the rate down to 2.85 per cent. Why the RBA held rates in July The RBA shocked experts and homeowners earlier this month when it decided to hold interest rates at 3.85 per cent. The Big Four banks all thought the July meeting would have concluded with a cut. However, the Board said concerns around unemployment and lack of broader inflation data made them play it safe. The jobless rate jumped to 4.3 per cent in June and beat market expectations of 4.1 per cent. The RBA only had monthly CPI data to work with when members met over July 7 and 8, but today's inflation data release spans across April, May, and June. This gives the RBA a much better snapshot with where inflation is headed. KPMG chief economist Brendan Rynne agreed the RBA should have everything it needed to cut interest rates. 'Consumer and business confidence has continued to remain in the doldrums, with households and investors looking for continued rate relief before they open their wallets further,' he said. AMP chief economist Shane Oliver said if the inflation reading for the June quarter came in at 2.8 or 2.9 per cent, the RBA would likely hold rates again and wait until there was decent enough downward movement. Buyer warning ahead of another possible interest rate cut Scott Kuru, CEO of property advisory firm Freedom Property Investors, warned prospective buyers shouldn't twiddle their fingers if they wanted to avoid higher prices. 'We've seen home prices rise 1.8 per cent across the capital cities over the last quarter, with all cities up and Brisbane and Perth starring with 2.3 per cent and 2.4 per cent growth," he said, which he estimated meant annual price growth of 7 to 10 per cent. 'We're seeing some of the strongest auction clearance rates in years.' 'Home buyers and investors realise there's only a small window before we see the end of affordable property in Australia,' 'They're not waiting for the RBA - they're acting with their feet."Sign in to access your portfolio
Yahoo
3 hours ago
- Yahoo
Asian stocks steady as investors brace for tariff deadline and Fed
By Gregor Stuart Hunter SINGAPORE (Reuters) -Asian stocks rose modestly on Wednesday, with investors cautious after trade talks between the U.S. and China ended without any substantive agreement and ahead of the Federal Reserve's policy announcement. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.3%, led by gains for Taiwanese stocks, after U.S. stocks ended the previous session with mild losses as traders braced for a slew of corporate earnings. Australian shares were up 0.7%, while Japan's Nikkei stock index slid 0.03%, and Hong Kong's Hang Seng Index skidded 0.4%. The euro edged up from a one-month low, rising 0.2% to $1.1564, as markets weighed the EU's trade deal with the Trump administration. Traders are preparing for several central bank decisions, key economic reports and corporate earnings during the next few days, culminating in U.S. President Donald Trump's August 1 tariff deadline. The Federal Reserve is expected to leave interest rates unchanged at its policy meeting later on Wednesday, though it could see a rare dissent by some central bank officials in favour of lower borrowing costs. "With labour market conditions near full employment, most Fed officials want to wait and see how tariffs impact inflation," said Tom Kenny, senior international economist at ANZ in Sydney. Some officials are concerned that tariffs could drive higher inflation expectations, leading to more persistent price pressures rather than a one-off hit, he said on a podcast. "Our expectation is that the Fed should be in a position to cut rates at the September meeting." U.S. Treasury bonds advanced ahead of the Fed's meeting, pushing yields to the lowest in almost four weeks following a strong auction of seven-year notes that quelled concerns about diminishing demand for government debt. [US/] The yield on benchmark 10-year Treasury notes was last 4.328%, the lowest level since July 3. The two-year yield, which rises with traders' expectations of higher Fed fund rates, was little changed at 3.873%. TARIFFS, CORPORATE EARNINGS The Bank of Japan is expected to hold steady on Thursday and the focus will be on its comments to gauge when the next rate increase will come after a trade deal between Japan and the U.S. cleared the way for the BOJ to resume its rate-hike path. Ahead of Trump's deadline to reach a deal to avert imposition of the "Liberation Day" tariffs, some countries' talks with the U.S. looked set to go down to the wire. U.S. and Chinese officials agreed to seek an extension of their 90-day tariff truce on Tuesday, though no major breakthroughs were announced. U.S. officials said it was up to President Trump to decide whether to extend a trade truce that expires on August 12 or potentially let tariffs shoot back up to triple-digit figures. India is also bracing for higher U.S. tariffs — likely between 20% and 25% — on some exports as it holds off on fresh trade concessions ahead of the August 1 deadline, two Indian government sources said. Meanwhile, three South Korean cabinet-level officials met with U.S. Commerce Secretary Howard Lutnick in a last-ditch push for a deal. Oil prices rose as potential supply shortages came into focus after Trump gave Moscow an abbreviated deadline toward ending the war in Ukraine. Brent crude futures rose 14 cents, or 0.19%, to $72.65 a barrel. U.S. tech megacaps Microsoft and Meta are due to report earnings on Wednesday that will set the tone for the rest of the week and the earnings season. "It's been a solid U.S. reporting season so far, but these megacap names need to run it hot and blow the lights out, given the bar to please has been sufficiently raised," said Chris Weston, head of research at Pepperstone. The Singapore dollar strengthened 0.2% after Singapore's central bank kept its monetary policy settings unchanged on Wednesday following stronger-than-expected economic growth in the second quarter. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 hours ago
- Yahoo
Asian stocks steady as investors brace for tariff deadline and Fed
By Gregor Stuart Hunter SINGAPORE (Reuters) -Asian stocks rose modestly on Wednesday, with investors cautious after trade talks between the U.S. and China ended without any substantive agreement and ahead of the Federal Reserve's policy announcement. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.3%, led by gains for Taiwanese stocks, after U.S. stocks ended the previous session with mild losses as traders braced for a slew of corporate earnings. Australian shares were up 0.7%, while Japan's Nikkei stock index slid 0.03%, and Hong Kong's Hang Seng Index skidded 0.4%. The euro edged up from a one-month low, rising 0.2% to $1.1564, as markets weighed the EU's trade deal with the Trump administration. Traders are preparing for several central bank decisions, key economic reports and corporate earnings during the next few days, culminating in U.S. President Donald Trump's August 1 tariff deadline. The Federal Reserve is expected to leave interest rates unchanged at its policy meeting later on Wednesday, though it could see a rare dissent by some central bank officials in favour of lower borrowing costs. "With labour market conditions near full employment, most Fed officials want to wait and see how tariffs impact inflation," said Tom Kenny, senior international economist at ANZ in Sydney. Some officials are concerned that tariffs could drive higher inflation expectations, leading to more persistent price pressures rather than a one-off hit, he said on a podcast. "Our expectation is that the Fed should be in a position to cut rates at the September meeting." U.S. Treasury bonds advanced ahead of the Fed's meeting, pushing yields to the lowest in almost four weeks following a strong auction of seven-year notes that quelled concerns about diminishing demand for government debt. [US/] The yield on benchmark 10-year Treasury notes was last 4.328%, the lowest level since July 3. The two-year yield, which rises with traders' expectations of higher Fed fund rates, was little changed at 3.873%. TARIFFS, CORPORATE EARNINGS The Bank of Japan is expected to hold steady on Thursday and the focus will be on its comments to gauge when the next rate increase will come after a trade deal between Japan and the U.S. cleared the way for the BOJ to resume its rate-hike path. Ahead of Trump's deadline to reach a deal to avert imposition of the "Liberation Day" tariffs, some countries' talks with the U.S. looked set to go down to the wire. U.S. and Chinese officials agreed to seek an extension of their 90-day tariff truce on Tuesday, though no major breakthroughs were announced. U.S. officials said it was up to President Trump to decide whether to extend a trade truce that expires on August 12 or potentially let tariffs shoot back up to triple-digit figures. India is also bracing for higher U.S. tariffs — likely between 20% and 25% — on some exports as it holds off on fresh trade concessions ahead of the August 1 deadline, two Indian government sources said. Meanwhile, three South Korean cabinet-level officials met with U.S. Commerce Secretary Howard Lutnick in a last-ditch push for a deal. Oil prices rose as potential supply shortages came into focus after Trump gave Moscow an abbreviated deadline toward ending the war in Ukraine. Brent crude futures rose 14 cents, or 0.19%, to $72.65 a barrel. U.S. tech megacaps Microsoft and Meta are due to report earnings on Wednesday that will set the tone for the rest of the week and the earnings season. "It's been a solid U.S. reporting season so far, but these megacap names need to run it hot and blow the lights out, given the bar to please has been sufficiently raised," said Chris Weston, head of research at Pepperstone. The Singapore dollar strengthened 0.2% after Singapore's central bank kept its monetary policy settings unchanged on Wednesday following stronger-than-expected economic growth in the second quarter. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
