ASX Stocks Rise on Inflation Data – Live Updates
- Economic uncertainty continued to weigh on markets,fueled by concerns about inflation,the potential for a U.S.
- Richmond Federal Reserve Bank president Thomas Barkin expressed very low confidence in current inflation forecasts, according to a Bloomberg report on September 27, 2024.
- Despite these concerns, consumer spending proved more resilient than anticipated.
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Economic Uncertainty Persists: Inflation Concerns,Shutdown Risks,and market Reactions
Table of Contents
Updated September 28,2024,at 22:08:28 UTC
key Economic Indicators and Market Response
Economic uncertainty continued to weigh on markets,fueled by concerns about inflation,the potential for a U.S. government shutdown, and geopolitical events. Stronger-than-expected consumer spending provided a partial offset, but overall sentiment remained cautious.
Richmond Federal Reserve Bank president Thomas Barkin expressed very low confidence
in current inflation forecasts, according to a Bloomberg report on September 27, 2024. This skepticism comes as tariffs continue to exert pressure on the economy. The potential for a government shutdown adds another layer of uncertainty, threatening to disrupt the timely release of crucial economic data, including this week’s employment figures.
Despite these concerns, consumer spending proved more resilient than anticipated. This strength led to a rise in U.S. Treasury bond yields. Gennadiy Goldberg,head of U.S.rates strategy at TD Securities, told Reuters on September 27, 2024, that The one radiant spot was that income and spending were a little bit firmer than expected, which means the consumer isn’t falling off a cliff as the market was expecting.
Commodity markets: Gold and Oil
Commodity markets reacted to the broader economic climate. Gold,traditionally a safe-haven asset,maintained recent gains,approaching $US3,800 per ounce,despite the rise in Treasury yields. Oil prices also increased, driven by disruptions to supply.
Ukrainian drone attacks on Russian infrastructure have curtailed exports from the major energy producer, Russia. The global benchmark, Brent crude, rose 1% to $US70.13 per barrel on September 27, 2024, according to market data. Reuters Commodities provides ongoing coverage of oil price fluctuations.
| Commodity | Price (September 27, 2024) | Change |
|---|---|---|
| Gold | $US3,800/ounce (approaching) | Held recent gains |
| Brent Crude | $US70.13/barrel | +1% |
Impact of Potential Government Shutdown
The looming possibility of a U.S. government shutdown is a significant source of economic anxiety. A shutdown could delay the release of key economic data,hindering accurate assessments of the economy’s health. This disruption would further complicate forecasting efforts, as highlighted by President Barkin’s concerns about inflation predictions. The Congressional Budget Office (CBO) provides detailed analysis of the potential economic effects of government shutdowns.