Business News

5 things you need to know today

  • US share markets rose on Monday as technology stocks recovered from last week. The S&P 500 and Dow hit fresh record highs - rising 20 points and almost 145 points respectively. The NASDAQ also hit its best level for the year, rising 87 points, or 1.4%. New York Fed President, William Dudley, also expressed optimism about rising US inflation, which he says is still a bit low, but likely to rise in line with wages as the labour market improves. 
  • Moody’s cut their credit ratings for 12 banks, including the big four. “The resilience of household balance sheets and, consequently, bank portfolios to a serious economic downturn has not been tested at these levels of private sector indebtedness”, the global credit rating agency said. They downgraded the big four banks's long-term rating by one notch, from Aa3 to Aa2. The decision follows Standard and Poor’s (S&P) move to lower the credit ratings of 23 Aussie banks in May. 
  • The Commonwealth Bank Business Sales Indicator (BSI) rose 0.8% in May (in trend terms). Annual trend growth in sales rose from an upwardly-revised 7.7% in April to 8.5% in May. The BSI is achieved by tracking credit and debit card transactions which are processed through Commonwealth Bank merchant facilities. It measures spending broadly across the economy (CommSec). 
  • Global oil prices fell on Monday as investors focus on increased oil production from the US, Libya and Nigera, which is offsetting the efforts of OPEC producers to curb production (CommSec). Brent crude fell US46 cents or 1.0% to US$46.91 a barrel, while US Nymex fell US54 cents or 1.2% to US$44.20 a barrel. 
  • At 1015 AEST on Tuesday, the benchmark S&P/ASX200 index was down 19.3 points, or 0.33 per cent, at 5,785.9, while the broader All Ordinaries index was down 17.4 points, or 0.3 per cent, at 5,818.1.

Published on: Tuesday, June 20, 2017

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