The US stock markets have reached record highs following the Federal Reserve's decision on interest rates. The release of the minutes from the Federal Open Market Committee (FOMC) meeting, which indicated support for a substantial interest rate cut, has boosted investor sentiment.
Inflation in the US has shown signs of cooling, with the annual headline inflation rate dropping to 2.4% and core inflation ticking up to 3.3%. In Australia, the ASX 200 has rallied due to optimism in the Chinese markets. Chinese authorities have announced measures to strengthen fiscal policy, which is seen as an effort to bolster economic stability and growth. Consumer confidence in Australia has increased, which is important for the economy.
The Reserve Bank of New Zealand has also lowered its official cash rate. Key economic indicators and data releases are scheduled for the week ahead, including inflation figures and employment data in Australia and New Zealand, and retail sales and building permits in the United States.
Netflix is facing challenges in maintaining high subscriber growth rates and its advertising business is not expected to become a primary revenue driver until 2026. Geopolitical tensions in the Middle East have led to a rise in crude oil prices, while gold prices have declined due to higher yields and a stronger US dollar.
The Volatility Index (VIX) has increased, indicating growing uncertainty among investors. Market participants will continue to analyze key indicators and geopolitical developments to inform their investment strategies.