US stocks fall further ahead of Federal Reserve interest rate hike

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Wall Street has seen further falls overnight and the benchmark index, the S&P 500, has fallen further in a bear market as investors wait for an “outsized” rate hike by the US Federal Reserve.

Key data:

  • The S&P 500 Index fell almost 0.4 percent to 3,735, the Dow Jones Index fell 0.5 percent to 30,365 and the Nasdaq Composite rose 0.2 percent to 10,828.
  • In Europe, the FTSE 100 fell 0.25 percent to 7,187, in Germany the DAX fell 0.9 percent to 13,304, while in Paris the CAC 40 fell 0.8 percent to 5,950.
  • In futures trading, the ASX SPI 200 index fell 0.6 percent to 6,637, while the Australian dollar fell 0.75 percent to around 68.70 US cents.

New data shows US inflation hits 40-year high, leading to big selling on Wall Street during Monday US time and Friday trading after the latest consumer price data was released.

The US Federal Reserve is expected to hike rates again on Thursday, possibly as high as 0.75 percent.

Meanwhile, the S&P 500 Index fell almost 0.4 percent to 3,735, the Dow Jones Index fell 0.5 percent to 30,365 and the Nasdaq Composite fell 0.2 percent to 10,828.

In Europe, the FTSE 100 fell 0.25 percent to 7,187, in Germany the DAX fell 0.9 percent to 13,304, while in Paris the CAC 40 fell 0.8 percent to 5,950.

The Australian market is expected to fall again as it fell almost 4 percent yesterday and lost almost $90 billion in a single day, its worst day in two years.

Spacebar to play or pause, M to mute, LEFT and RIGHT ARROW to search, UP and DOWN ARROW to adjust volume. ViewDuration: 17 min 8 sec 17 min Bearish risks rise as central banks ease interest rates, warns Mark Faber. (ABC: Katherine Robinson)

The ASX SPI 200 Index fell 0.6 percent in futures trading to 6,637.

The Australian dollar has continued to fall off the rising greenback, trading around 68.70 US cents, down 0.75 percent as of 7:00 am AEST.

As the US currency surged to a two-decade high against a basket of currencies, traders braced for more aggressive rate hikes from the Fed.

In Australia, Reserve Bank Governor Philip Lowe told ABC 7.30 that interest rates could rise to 7 percent.

much more important minerals

The United States, Canada and other countries have formed a new partnership aimed at securing supplies of critical minerals needed for clean energy and other technologies.

A US State Department official said reducing carbon emissions in North America would require a huge amount of minerals.

“You will need six times more lithium by 2050 than today to meet the clean energy goals,” Jose Fernandez, the US undersecretary for economic development, told Reuters.

Elsewhere, spot gold fell 0.6 percent to $1808 an ounce, while Brent crude fell 1 percent of its value to $121.05 a barrel.

ABC/Reuters

Posted 1 hour ago Tuesday, June 14, 2022 9:51 PM Updated 1 hour ago Tuesday, June 14, 2022 9:55 PM

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