Highlights
- The ASX 200 gave back early gains despite a strong overnight lead from Wall Street
- RBA Governor Michele Bullock flagged emerging inflation risks tied to oil prices and the global AI investment boom
- Markets are now pricing a high probability of another rate hike at the RBA's late September meeting
The S&P/ASX 200 looked like it was heading for a decent Friday after a strong lead from Wall Street. However, those early gains have now disappeared. Within the ASX Financial Stocks category, attention has shifted firmly toward domestic interest rate policy, dragging the broader ASX 200 lower despite a genuinely supportive offshore backdrop.
A Decent Lead From Wall Street
There was actually plenty going the ASX 200's way before today's market open. Wall Street finished comfortably higher overnight, with the S&P 500 Index gaining solidly and the Nasdaq Composite Index jumping even more sharply. The Dow Jones Industrial Average also climbed.
Oil prices moved lower as well, within the ASX Oil and Gas Stocks category's broader macro backdrop, with Brent crude falling for its second straight decline. Meanwhile, the US 10-year Treasury yield dropped back below a key psychologica...