US Equity Markets Poised for Gains as Fed Rate Hike Fears Ease
US equity markets are poised for another week of gains following Federal Reserve Governor Christopher Waller's dovish comments. He noted that recent inflation data has improved and, if incoming numbers continue to point in this direction, he would lean towards keeping the federal funds rate at its current level by the 16 September meeting.
This shift in tone led to a decrease in the probability of a September Fed rate hike from 68% earlier in the week to about 50%. Meanwhile, investors breathed a sigh of relief after nothing in the latest Middle East flare-up warranted fresh US strikes on Iran since Wednesday.
Closer to home, the Australian market is trading lower due to falling housing prices and profit-taking in big mining stocks. The ASX 200 index declined by 70 points (-0.70%) on the week, marking its third loss in four weeks.