The Wild Rides Continue…

Once again, volatility continues to surge, as the S&P 500 gave up gains on Thursday driven by rising Treasury yields despite the bulk of quarterly results suggesting corporate America is in better shape than feared. Recession fears are growing. More broadly the stresses and strains are showing across UK Politics, Oil, and Investment Banking, so we will touch on all these in today’s post.

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The US Housing Market Is Cooling…

Latest US data shows housing starts is falling, as mortgage rates rise. One reason what the markets slide on Wednesday. Ahead, expectations of future earnings are down – just another reason to expect weaker markets, as bond yields continue to track higher.

The latest edition of our finance and property news digest with a distinctively Australian flavour.

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The Unemployment Numbers Disappoint!

The ABS data today was a bit of a shock, compared with expectations, as the data indicated a slowing of the employment market.

https://www.abs.gov.au/statistics/labour/employment-and-unemployment/labour-force-australia/sep-2022

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Today’s post is brought to you by Ribbon Property Consultants.

Food Inflation Still Haunts The Halls…

The latest data from New Zealand, the UK and Canada highlights how embedded higher food prices are, something which also came through in recent ABS figures.

Even if petrol prices slide a little (and OPEC+ is trying to reverse that), many households will be wilting under the pressure from everyday costs of living.

And it’s worth noting there are various adjustments to inflation metrics which seem to drive them lower – I wonder why?

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FINAL REMINDER: DFA Live Q&A Property Now With Chris Bates 8pm Sydney Tonight

Join me for a live discussion about the current state of the property market, with Mortgage Broker Chris Bates from wealthful.com.au

You can ask a question live.

Links to upcoming events:

Meet the Managers Forum Wednesday 19/10/22 6:30-8pm:
https://www.eventbrite.com/e/meet-the-managers-tickets-410294761677?aff=wtw to register.

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Inside The RBA’s Interest Rate Policy Sausage!

From the latest minutes we get a view of the deliberations which ultimately drove the RBA to 25 basis points a couple of weeks back. Not that we necessarily want to see the sausage being made. But there are some key points which signal no intent to pivot, and expectation of more rate hikes ahead, and the potential fall out in terms of employment and wages.

https://www.rba.gov.au/monetary-policy/rba-board-minutes/2022/2022-10-04.html

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Shocking New Zealand Inflation News!

While New Zealand Inflation has fallen very slightly to 7.2% for the year to September, down from the 32-year high of 7.3% hit in June, the 6.6% domestic inflation figure is the highest since Stats NZ started that data series in 2000, up from 6.3% last time.

Stat NZ today released their latest data and advised that the consumers price index increased 7.2 percent annually in the September 2022 quarter.

This signals a likely 75 basis point rate hike from the Reserve Bank of New Zealand in November. Already this year the OCR has been hiked by a record (for a calendar year) 275 basis points to 3.50%.

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