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RBA interest rate cut expectations remain cautious ahead of meeting

RBA cuts interest rates to 4.1% but banks predict no further cuts in April despite easing inflation pressures.

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RBA cuts interest rates to 4.1% but banks predict no further cuts in April despite easing inflation pressures.

The Reserve Bank of Australia (RBA) cut interest rates to 4.1 per cent for the first time since November 2020 in February. However, mortgage holders should not expect consecutive cuts when the board announces its decision today.

Australia’s inflation rate fell to 2.4 per cent in February, with underlying inflation at 2.7 per cent. Economist Stephen Koukoulas highlighted strong reasons for another interest rate cut based on these inflation figures.

Despite this, economic teams from Australia’s Big Four banks predict that rates will remain unchanged. Gareth Aird from CBA pointed out that data has been softer than RBA’s expectations, but not enough to compel a rate cut. Aird noted that further cuts would indicate a significant shift in RBA’s economic outlook in a short time frame.

The banks predict the next quarterly inflation data due on April 30 will be below RBA forecasts, potentially paving the way for a 0.25 per cent cut in May. The unemployment rate is stable at 4.1 per cent, also not prompting an immediate rate change in April.

CBA, Westpac, NAB, and ANZ all expect the cash rate to be held steady at 4.1 per cent today. Looking ahead, CBA and Westpac foresee three total cuts this year, while ANZ anticipates only one.

A mortgage of $600,000 could see monthly repayments reduce by $91 with a 0.25 per cent cut. Experts surveyed largely believe the RBA will maintain the current rate in April. Their next meeting is scheduled for 2:30 pm AEDT today. Further meetings will occur periodically until November.

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US stocks surge amid AI hype despite market volatility

US stock market bounced back, S&P 500 up 16% in 2023, driven by AI excitement amid policy uncertainties.

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US stock market bounced back, S&P 500 up 16% in 2023, driven by AI excitement amid policy uncertainties.


The US stock market has experienced a rollercoaster year, with the S&P 500 nearly entering a bear market in April due to tariff concerns. Investor sentiment shifted following policy changes from President Trump, setting the stage for a dramatic rebound.

By June, the S&P 500 was hitting new records, fueled by excitement over artificial intelligence and its impact on the tech sector. Corporate profit forecasts improved, contributing to an overall annual gain of 16%, despite ongoing market fluctuations.

Yet, the S&P 500 still trails international markets, reflecting lingering policy uncertainties in the US.

Investors are watching closely to see how domestic and global factors will shape the next year.

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Stocks rally ahead of Thanksgiving as markets log four days of gains

Markets gain momentum ahead of Thanksgiving, with the Dow up 388 points and Oracle rising 4% amid investor optimism.

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Markets gain momentum ahead of Thanksgiving, with the Dow up 388 points and Oracle rising 4% amid investor optimism.


Markets are moving into the Thanksgiving break with strong momentum, as stocks notch four straight days of gains. The Dow Jones Industrial Average jumped 388 points, while the S&P 500 added 0.9%, pushing both indexes toward their best week since June.

Oracle led major movers, rising more than 4% after Deutsche Bank reaffirmed its bullish outlook on the tech giant. Broad investor optimism continues building across sectors as economic data softens and earnings remain resilient.

All eyes are now on the Federal Reserve and what potential shifts in interest-rate policy may mean for the markets. U.S. markets will close Thursday for the Thanksgiving holiday and reopen Friday for a shortened trading session.

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Dow surges 500 points amid rate cut optimism

Dow jumps 569 points on fresh hopes for December rate cut and AI market optimism

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Dow jumps 569 points on fresh hopes for December rate cut and AI market optimism

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In Short:
– Dow Jones rose 569 points, reflecting optimism for a Federal Reserve interest rate cut.
– Alphabet’s stock increased as Meta may invest in AI chips, but Nvidia’s declined amid market concerns.
The Dow Jones Industrial Average increased by 569 points or 1.2% on Tuesday, reflecting investor optimism for an upcoming Federal Reserve interest rate cut. The S&P 500 and Nasdaq Composite also posted gains, up 0.8% and 0.4% respectively. This represented a recovery from earlier losses, where the S&P 500 briefly fell by 0.7%.Banner

Markets anticipate an 85% chance of a quarter-point rate cut in December, driven by comments from New York Fed President John Williams, who indicated the possibility of lower rates soon. Investor sentiment strengthened following reports that Kevin Hassett may be appointed as the next Fed chair, potentially resulting in a more lenient monetary policy.

Tech Sector

Alphabet saw its stock rise by over 1% after reports indicated that Meta Platforms might invest in its AI chips. This could signal increased demand for AI technology, benefiting the sector overall. However, Nvidia’s stock fell more than 3%, suggesting concerns about its dominance in the AI chip market.

Investors are also wary of the valuation of tech stocks. Despite recent gains, the S&P 500 and Nasdaq remain down over 1% and 3%, respectively, for November, while the Dow has lost more than 1% this month. The broader market’s performance indicates ongoing scrutiny regarding tech valuations amid changing economic expectations.


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