Australian stocks & ETFs rise after RBA’s smaller-than-expected interest rate hike
Oct. 04, 2022 9:22 AM ETiShares MSCI Australia ETF (EWA), GENE, BHP, FXAKZIA, IMMP, IMRN, FLAUBy: Jason Capul, SA News Editor
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Stocks and exchange traded funds tied to the Australian market advanced in Tuesday's premarket trading in the U.S. The move came after the Reserve Bank of Australia raised interest rates by a lower-than-expected amount.
The country's central bank increased its key rate by 25 basis points rather than the 50 basis points that was anticipated. As a result, Australian stocks rallied, with the S&P/ASX 200 finishing higher by 3.75%. The market was also helped by momentum from Wall Street's rally the previous day.
With the rise in Australian shares, U.S.-listed funds and stocks tied to Australian securities felt a topside push in premarket action. The iShares MSCI-Australia ETF (NYSEARCA:EWA), a fund that tracks an index composed of Australian equities, is +1.7% in premarket trading.
Not familiar with AUs situation.
Record high inflation and tight job market like us?
Once the interest rate hikes do what the Fed wants them to, I suspect we’ll see a retreat. According to Powell, ZERO of what they want to happen has happened so far.
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