Global Markets Surge Amid Earnings Results, RBA Signals Rate Hike
Global markets experienced a surge last week, driven by positive earnings results and a moderation in expectations for Federal Reserve rate hikes.
The US, Eurozone, and Japanese shares rose to new record highs, while Korean shares broke their downtrend. However, Australian shares fell around 1.7%, partially due to a correction after a 5.6% rise in the prior two weeks left them overbought.
Earnings reports for Australia were mixed, with worries about slowing housing finance commitments weighing on banks and sharp falls in industrial, property, and material shares.
The Reserve Bank of Australia (RBA) kept interest rates on hold as expected but signaled a tightening bias, citing underlying inflation, jobs, and house prices that are still above target.