NewsBite

Scoreboard: Fed divided

Bullish data help buoy Wall Street, as divisions among US policymakers suggested rate hikes are off the table for now.

US Federal Reserve Board Chairwoman Janet Yellen testifying before the Senate Banking, Housing and Urban Affairs Committee last month. Minutes of the central bank’s June meeting showed divisions over the health of the labour market and the outlook for growth. Win McNamee/Getty Image
US Federal Reserve Board Chairwoman Janet Yellen testifying before the Senate Banking, Housing and Urban Affairs Committee last month. Minutes of the central bank’s June meeting showed divisions over the health of the labour market and the outlook for growth. Win McNamee/Getty Image

— Dow Jones Industrial Average: +0.4% at 17,919

— S&P/500: +0.5% at 2,100

— WTI Crude: +1.8% at $US47.43

— FTSE 100: -1.3% at 6,464

— Gold: +0.6% at $US1,367.10

— TSI spot iron ore: Steady at $US55.80

— ASX futures: +36 points at 7.05am (AEST)

— Australian dollar: Up to US75.18c at 7.05am (AEST)

Good morning,

Here’s what happened overnight:

US stocks

Wall Street reversed early losses to stage a rally as investors hunted for bargains and an upbeat data release on the health of the services sector buoyed sentiment.

European stocks

Across the Atlantic, bourses swooned as growing fears about the health of the British financial sector sent investors fleeing to safety.

Commodities

Gold reached a fresh two-year high as traders sought safe havens, while oil prices followed US stocks higher and iron ore held steady.

Pound bounces from its depths

The British pound plumbed a fresh 31-year low before narrowing its losses, but the unit remains below $US1.30.

Three more British funds halt withdrawals

After a rush of investors trying to pull their money out of illiquid property funds, a total of six managers have now suspended trade, adding to jitters over Britain’s financial system.

Fed officials agree to disagree

The US central bank’s June meeting minutes showed divisions over the health of the labour market and the outlook for growth, with officials deciding it would be “prudent” to wait for more data before moving.

Britain offers a warning to Eurosceptics

After the uncertainty sparked by Britain’s vote to leave, support for staying in the European Union surged in several nations where anti-EU sentiment has been strong, a poll showed.

US indicators offer a mixed picture

Two reads on the health of the US services sector suggested varying degrees of expansion, while retail sales fell a little more than expected.

Germany downplays the British vote

The German finance minister said his country’s economy was strong despite the possible fallout of the UK’s decision to leave the EU.

Sweden blames Brexit for blow to confidence

Sweden’s central bank left interest rates on hold in negative territory, saying the UK vote had increased economic uncertainty.

Ahead today

No key data is due in Australia. In the US, expect the ADP jobs report.

In today’s ABR

Poll puts projects ‘in peril’

Markets take a sober view

Golden bet on Dacian pays off

Margin Call:Studio 104 gets party restarted

DataRoom:August awash in real estate floats

Add your comment to this story

To join the conversation, please Don't have an account? Register

Join the conversation, you are commenting as Logout

Original URL: https://www.theaustralian.com.au/business/business-spectator/commentary/scoreboard-fed-divided/news-story/5af4523f8d00cf8b30617d8fa53d0e31