Monday, September 16, 2024

Live: Inflation accelerates in Canada weeks after cutting interest rates, ASX to fall ahead of local inflation data

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Good morning and welcome to Wednesday, June 26 — we’re officially halfway through the week.

It was a mixed result on Wall Street overnight, largely thanks to Nvidia snapping its three day run of losses and gaining 6.8%.

Nvidia’s gain led the Nasdaq and S&P 500 higher — picking up 1.3% and 0.4% respectively at the end of trade — while the Dow slipped by 0.8%, after home improvement retailer Home Depot dropped by 3.6%.

Meanwhile in Canada, inflation surprised on the upside, accelerating from 2.7% in April to 2.9% in May.

Additionally, key measures that look at core inflation — which is what Canada’s central bank pays close attention to — also rose for the first time in five months.

It comes after the Bank of Canada cut interest rates for the first time in four years earlier this month, and it’s looking unlikely that they’ll follow it up with another rate cut next month.

As far as the money markets are concerned, on Monday (local time), they were expecting a 70% chance of a rate cut at its July meeting — now this inflation data has trimmed that rate cut probability to 45%.

And speaking of inflation, that’s exactly what the focus will be here today, with the ABS releasing the monthly consumer price index data for May at 11:30am AEST. (More on that soon.)

As for our local share market, futures are pointing to a fall of around 0.4% when trading begins later this morning.

Righto, let’s get this show on the road. I’m in the driver’s seat, and I’m counting on you to select an excellent road trip playlist to keep spirits high.

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