sentiment

Danger Down Under: Yields drop with iron to fuel recession talk

SYDNEY/TOKYO (June 2): Whether or not the land Down Under snaps its two-decade-long streak without a recession, a glance at the charts shows this past week has been a "septima horribilis" (to purloin and tweak from Queen Elizabeth II) for the world's 13th-largest economy. Iron ore is declining again amid worrying signs that China is wobbling, businesses are reluctant to borrow as they plan on cutting investment to a decade low.  An unexpected rebound in retail sales and soaring stock prices for Qantas were rare bright spots.

Fed leaves interest rates unchanged, remains upbeat on economy

Fed eagle

WASHINGTON (Feb 2): The Federal Reserve held interest rates steady on Wednesday in its first meeting since President Donald Trump took office, but painted a relatively upbeat picture of the US economy that suggested it was on track to tighten monetary policy this year.

The US central bank said job gains remained solid, inflation had increased and economic confidence was rising, although it gave no firm signal on the timing of its next rate move.

Fed policymakers are still awaiting clarity on the possible impact of Trump's economic policies.

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