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ASX Live Coverage – August 13 Update
Welcome to our live coverage of the ASX for Wednesday, August 13. We’re trialling a new format today, promising a high volume of updates leading up to the market opening and periodic insights throughout the trading day. This live blog will conclude around 2:00 pm AEST. Don’t forget to manually refresh for real-time updates and share your feedback to help us enhance your experience.
Anticipation of Fed Rate Cut Surges Beyond 90%
[8:48 am] Recent economic indicators have bolstered expectations for a Federal Reserve interest rate cut in September. According to the CME FedWatch Tool, there is now a remarkable 93.4% probability of a rate reduction next month. This marks a significant leap from 85.9% the previous day and 57.4% just a month ago.
US Inflation Data Aligns with Predictions
[8:41 am] The Consumer Price Index (CPI) numbers released for July have largely met expectations. Key highlights include:
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Core Inflation: Increased by 0.3% month-on-month, matching estimates but slightly up from June’s 0.2%.
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Annualised Core: Climbed by 3.1%, marginally surpassing the 3.0% forecast.
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Headline Inflation: Rose by 0.2% month-on-month, in alignment with predictions, and down from June’s 0.3%.
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Annualised Headline: Recorded at 2.7%, below the anticipated 2.8%.
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Index Shelter: Contributed to a 0.2% month-on-month climb, becoming the primary reason for the monthly increase.
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Disinflation: Observed in sectors like energy, which fell by 1.1%, while food prices at home remained stable.
- Tariff-afflicted Categories: Reported limited but mixed impacts thus far.
Morning Market Overview
[8:30 am] The ASX 200 futures indicate an increase of 14 points (+0.15%) as we begin the day, suggesting a potential breakthrough of the 8,900 mark for the first time in history. This optimism follows a robust performance overnight, where both the S&P 500 and Nasdaq hit record highs, and the Russell 2000 achieved its best performance since May.
For those who are new to our coverage, you can quickly catch up by referring to today’s Morning Wrap.
The market appears poised for significant movements today, shaped by both local economic data and international influences. Stay tuned for further updates as the trading day unfolds.
