Local shares saw a slight decrease on Monday, with Tech and Comm Services making gains, while Mining stocks led the losses.
Energy stocks experienced a rally as WTI futures rose nearly 1% in Asian hours, exceeding US$90 a barrel. Bond yields also increased as traders anticipate several Fed officials’ public appearances this week.
Hedge fund expert Bill Ackman predicts long-term rates will continue to rise due to persistent high inflation. He argues that the long-term inflation rate will not return to 2%, despite Chairman Powell’s repeated assertions. Ackman also notes that the deflationary impact of outsourcing production to China has ended, with workers and unions gaining more bargaining power.
Asian stocks primarily fell on Monday, with Chinese property stocks experiencing a significant drop following the cancellation of a creditor meeting by China Evergrande Group.
Santos (ASX:CEO) saw a rise after its board approved a flexible working arrangement for CEO Kevin Gallagher, allowing him to support a family member’s medical treatment. External commitments, including participation in industry bodies, conferences, and extended travel, will be delegated.
Allkem (ASX:AKE) and Qantas (ASX:QAN) both experienced a fall after announcing higher costs. Allkem’s latest lithium project estimates revealed a $US413 million increase due to higher labour and material expenses. Qantas announced an additional $80 million in customer improvements for FY24, funded from profits, and plans to absorb higher fuel prices.
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