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  • Peer Wealth

Equity markets buoyed by US inflation data


  • Local and global equity markets rose this week with investors buoyed by a US inflation print that was in line with expectations. 

  • Investors have mostly been pleased with US company quarterly reporting season, with analysts now expecting that earnings from the largest 500 companies rose 5.4% in the period. This would be the highest quarterly earnings growth since Q2 2022. 

  • In local stock news, Fletcher Building shares plunged to a more than two-decade low after the Australian / NZ building company cut its 2023/24 earnings guidance saying conditions had weakened. The company said there had been a sharp correction in their Australian residential business. 

  • Offshore listed miner Anglo American rejected a sweetened takeover offer from BHP that valued the company at US$43 billion. The ball is back in BHP’s court to make an improved offer or walk away. 

  • Aristocrat shares rose strongly after they beat first half guidance, added to their share buyback, and announced they are looking to offload low growth assets in their stable. 

  • OPEC stuck to its forecast for strong growth in global oil demand in 2024 and that there was a chance the world economy could do better than expected this year. 


  • Australian Federal Treasurer Jim Chalmers handed down a bigger than expected budget surplus for the 2024/25 financial year, a second consecutive surplus. Plenty of new spending which has been front-loaded, along with temporary boosts to revenue which are expected to fall away in the coming years. Trying to alleviate cost-of-living issues won’t assist the RBA’s plight. 

  • The Australian unemployment rate rose to 4.1% in April, up from an upwardly revised 3.9% in March. Interestingly, more jobs were created than expected, with 38,000 added during the month whilst the participation rate increased. 

  • Australian wages rose by 0.8% in the March quarter to be 4.1% higher over the year. Growth in wages was driven by the private sector, though growth did moderate to 0.8% for the quarter whilst public sector wages growth also moderated to 0.5%. 

  • A Commonwealth Bank household spending index fell by 1% in April, taking the annual growth rate down to 2.6%. The news comes after the NAB business survey also indicated slowing measures of prices and employment whilst business conditions also softened. 

  • US headline inflation rose by 0.3% in April, coming in slightly below expectations. The monthly move saw annual inflation fall from 3.5% to 3.4%. Importantly, core inflation rose in line with expectations. Whilst the moves here were nothing to crow about, they were well received given recent inflation prints have come in above expectations. 

  • The US central bank chair said they will be patient and wait for evidence that inflation continues to cool before contemplating rate cuts. 

  • A key US consumer survey showed that inflation expectations for the year ahead rose to 3.5% from April’s 3.2%, weighing down sentiment in the poll to its lowest level in six months whilst coming in well below expectations. 

  • US producer prices rose 0.5% in April, coming in above expectations, with the annual growth lifting from 1.8% to 2.2%. A small business optimism index rose in April against expectations for a slight fall. 

  • In other US economic data, retail sales were flat in April coming in well below expectations; business inventories fell in March in line with expectations; a key housing market index fell in April coming in below expectations; housing starts lifted whilst building permits fell; import and export prices rose in April; and a manufacturing index slid further into negative territory against expectations of an improvement. 

  • The UK exited a fleeting recession with economic growth of 0.6% in the March quarter, coming in above expectations. 


  • US President Joe Biden ramped up tariffs on some Chinese goods following an almost two-year review of tariffs first imposed by Donald Trump. Total tariffs on Chinese electric vehicles alone will rise to 102.5% from 27.5%. 

  • Russian President Vladimir Putin was sworn in for a fifth term and not long after replaced his long-serving defence minister with a trained economist currently serving as Russia’s First Deputy Prime Minister. The change was unexpected. 

  • US President Joe Biden signed into law the bill to ban the import of Russian-sourced enriched Uranium into the US, but with waivers to allow the import of low-enriched uranium if there is no alternative source available. 

  • Slovakian Prime Minister Robert Fico suffered life-threatening injuries after being shot in public in what is the first assassination attempt on a European leader in more than two decades. 

  • US President Joe Biden and Donald Trump said they would debate each other on June 27 accepting an invitation from television news network CNN. 

  • China’s stockpile of US government bonds slid in March to the lowest level since 2009. China remains the second largest foreign holder, behind Japan, with US$767.4 billion. 

Disclaimer: The material and contents provided in this in this email is of a general nature and is not intended to be exhaustive. It is made available in good faith and believed to be correct at the time of preparation. The information does not provide specific advice as the objectives, financial situation, and specific needs of any particular person, including yours, were not taken into account when preparing the information. Prior to making any financial decisions, always seek independent legal and financial advice. Futuro Financial Services Pty Ltd and its authorized representatives (or credit representatives) do not accept liability for any errors or omissions in the information provided in this document. Peer Wealth FP Pty Ltd is a Corporate Authorised Representative (Representative No, 001281977) ABN 24 115 294 463 of Futuro Financial Services Pty Ltd, Australian Financial Services Licensee (AFSL 238478).


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