Investing: Asian Markets Mixed on Fed Meeting Outcome
INVESTING – On Thursday, Asian markets were mixed with the decline of Australia’s stocks as the leadership of the country’s Prime Minister Malcolm Turnbull’s was in question following the resignations of three senior ministers and call for a second leadership vote.
According to the Federal Reserve, the central bank is ready for another hike in interest unless the U.S. economy remains healthy.
“Many participants suggested that if incoming data continued to support their current economic outlook, it would likely soon be appropriate to take another step in removing policy accommodation,” minutes of Federal Open Market Committee meeting said.
Moreover, the minutes highlighted that their target rate’s “further gradual increases, would be consistent with a sustained expansion of economic activity, strong labor market conditions and inflation near the committee’s symmetric 2 percent objective over the medium term.”
In Asian trade, China’s Shanghai Composite and the Shenzhen Component added 0.2% and 0.4% respectively. This was amid the anticipation of traders on lower-level trade talks between Beijing and Washington. According to US President Donald Trump, he hasn’t expected much to transpire during the meeting. There were reports which said the talks are forecasted solely to release a joint statement of productive discussions.
Later in the day, the United States will impose tariffs on $16 billion worth of Chinese imports while China is set to impose the same amount of tariffs on US imports.
Meanwhile, Huawei Technologies received some focus on the banning of the Australian government to its supply of the equipment on the planned 5G network. Further, the government believed that this could put the risk of foreign interference.
After the resignation of the Finance Minister Mathias Cormann, the ASX decreased 0.2%. Cormann expressed confidence that former Home Affairs Minister Peter Dutton is the potential candidate to lead the government.
“I can’t ignore reality. I can’t ignore the fact that a majority of colleagues in the Liberal Party… are of the view that there should be a change,” he said.
Investing: Australia stocks record further low at trade close
On Thursday, Australia stocks recorded a further low at a trade close. The losses of sectors such as in Utilities, Gold and A-REITs headed the shares lower.
The S&P/ASX 200 declined to 0.24% at the Sydney close.
Meanwhile, Webjet Ltd, Wisetech Global Ltd, Appen Ltd were the best performers during the S&P/ASX 200 session. Webjet Ltd increased to 19.48% or 2.820 points to end at 17.300. On one hand, Wisetech Global Ltd gained 17.34% or 3.450 points to trade at 23.350 at the close. Appen Ltd, on the other hand, surged to 13.61% or 1.750 points to end at 14.610.
Flight Centre Ltd, APA Group, and ARB Corporation Ltd were the worst performers in the trade. Flight Centre Ltd made an increase of 8.66% or 5.810 points to end at 61.310. On one hand, APA Group dropped to 7.79% or 0.790 points to trade at 9.350 at the close. ARB Corporation Ltd, on the other hand, went down to 6.64% or 1.420 points to 19.980.
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