These developments led to a positive turn in global financial markets as US stock indices surged on Thursday. In similar fashion, the Dow Jones Industrial Average gained 299.97 points to close at 46,247.29, for an increase of 0.65%. The S&P 500 soared 0.59% to 6,643.70. At the same time, the tech-heavy Nasdaq Composite rose 0.44%, ending at 22,484.07. Even with positive action each day, the Nasdaq Composite still ended the week 0.7% in the red. The S&P 500 edged lower by 0.3%.
In Asia, market reactions varied. South Korea’s Kospi index was up 1.25%, with small-cap Kosdaq composite gaining 1.29%. Hong Kong’s Hang Seng index surged 1.19% at the open. This boost was powered by a 1.5% rise in the Hang Seng Tech Index. On the flip side, Japan’s Nikkei 225 was down by 0.84%. Our next stop down under, as the Australian S&P/ASX 200 also eked out a gain, up 0.71%.
We know that analysts across the board are keeping a keen eye on economic indicators because they could signal large changes in monetary policy. According to the Commonwealth Bank of Australia, “The RBA are likely to find themselves in a tougher position than recent meetings. There is real tension building in the data flow.” In Washington, worries over inflation are trending. This presents major challenges for the Reserve Bank of Australia (RBA) as they try to steer the economy.
The bank pointed out upside risks to Q3 inflation. They warned that supply chain disruptions and inflationary pressures might pose major obstacles in coming quarters.