Business

Markets looking forward to Inflationary pressure

Share Markets:

The trade inspired by Trump's potential inflationary policies continued to come back into vogue, driving US share indices, including the S&P500 and the Dow, to new record highs. Overnight, they rose 0.5% and 0.7%, respectively.

Interest Rates:

Expectations that Trump will implement tax cuts and boost inflation saw bonds sell-off.

Yields on US treasuries rose across the board. US 10-year yields rose 3 basis points to 2.43% - still below their December peak but higher than a year ago.

Australian bond futures moved to a lesser extent. The implied 3-year bond yield edged 1 basis point higher to 1.96%, while 10-year yields were unchanged at 2.74%. 

Foreign Exchange:

The US dollar index rose to its highest in three weeks on expectations that Trump would release a "phenomenal" tax plan.

Euro was also weighed down by concerns over the French presidential election and other political uncertainty across the continent. The stronger US dollar saw the Australian dollar weaken to just below 76.5 US cents, despite stronger iron ore prices.

Commodities:

Oil prices weakened on the stronger US dollar and despite reports that the Saudis had reduced crude output significantly in January.

Gold prices were also under downward pressure from the US dollar, but iron ore prices surged past US$90 a tonne.

Australia:

No domestic data to report.

Japan:

GDP rose by a slightly smaller than expected 0.2% in Q4. This followed an increase of 0.3% in Q3. It was the fourth consecutive quarter of positive GDP growth in Japan. Net exports contributed to GDP growth in the December quarter.

United States: 

No significant data releases, however a NY Federal Reserve survey on consumer inflation expectations rose to its highest since mid-2015.

Expectations for inflation a year ahead rose to 3.0% up from 2.8% previously.

Topics:  donald trump economy inflation st george economics



Redefining marriage 'an attack on freedom': Shelton

Lyle Shelton from the Australian Christian Lobby. Photo Contributed

'I will always believe the truth about marriage'

LIVE: Cowboys prevail in U18s

Centre Dylan Lippi shows his class for Warwick in under-18 rugby league.

Cowboys 18s end day on high note for Warwick.

WATCH: Thrills and spills at Morgan Park

Warwick and Cunningham competing in the mixed opens.

Tumbles amongst an exciting opening morning of polocrosse.

Local Partners

Taylor Swift wipes presence off social media

TAYLOR Swift has completely disappeared off social media — and her fans don’t know what to think.

Swedish TV drama turns up heat

Louise Nyvall stars in the Swedish TV series Farang.

Scandinavian crime thriller goes troppo

Aboriginal artists' call to action

Anwar Young, winner of this year's overall prize and last year's young artist prize.

Important messages of survival and healing

Radio host Matt Okine leaps to small screen

Valene Kane, Matt Okine and Harriet Dyer star in the TV series The Other Guy.

First foray into acting a long time in the making

Hollywood’s new highest paid actress

Jennifer Lawrence had to settle for third this year behind Emma Stone and Jennifer Aniston.

CAN you guess who has dethroned Jennifer Lawrence?

Movie trailer dubbed too racy for TV

Alicia Vikander stars in Tulip Fever.

THE trailer for Tulip Fever is so saucy some networks have banned it

Liz Hurley, 52, has never looked better

She’s definitely not shy to pose in a bikini.

Life in your 50s has never looked as good as it does on Liz Hurley.

EXPLAINED: What the 'Costco effect' means for Ipswich

PRICE WARS: A Costco store similar to this one in Canberra, is planned for Ipswich.

Exclusive 'cult' about to change how families do grocery shopping

4800 homes to be built in massive new Coast estate

Masterplanned community full steam ahead - it's not Caloundra South

Open for inspection homes August 17 - 23

Check out this weekend's homes open for inspection.

Airbnb, Stayz and co tipped to squeeze Coast housing market

HOLIDAY BOOM: Airbnb letting is putting a further squeeze on long-term rentals.

Councils exploring options to manage the industry