Australian shares are poised to fall after much stronger-than-predicted retail sales in the US pushed the prospect of interest rate cuts in the world’s largest economy further away.
“Geopolitical tensions in the Middle East remain a wild card,” said Chris Larkin at E*Trade from Morgan Stanley. “Investors will need to move past concerns that rate cuts will be delayed because of sticky inflation.”Locally, attention will swing to the health of China’s economy at noon when the world’s second-biggest economy reveals retail sales, industrial production, GDP, and unemployment.– The mining company will reveal its operational performance in its first quarter production report at 8.
Bond yields rose after the release due to rising concerns about a potential “no-landing, no-rate cut scenario,” according to Sam Millette at Commonwealth Financial Network “In our view it’s not about ‘higher for longer’ when it comes to the Fed’s rate regime rather, it’s a continuation of the ‘pause for now’ until inflation gives up its stickiness,” said John Stoltzfus at Oppenheimer Asset Management.: 8.30am - Senate Hearing: supermarket prices; 9am - Senate Hearing: regional bank closures; House Hearing: insurers’ response to 2022 flood claims; 11.30am - ABS Data: February overseas arrivals and departures.