Retail – US retail has risen 0.3% in August contrary to the common belief that it was going to decline heavily due to inflation. Ray Farris, chief economist at Credit Suisse, said the main takeaway of the retail report is that consumers continue to spend and the labour market is adding jobs.  

China – Economic activity in China has improved in August with retail sales increasing 5.4% which is higher than July’s increase of 2.7% and greater than the economist were anticipating. Industrial production also rose increasing by 4.2%, more than the 3.8% increase in July.  

Interest rates – US Federal Reserve Chairman Jerome Powell said bringing inflation down was likely to “require maintaining a restrictive policy stance for some time. “The historical record cautions strongly against prematurely loosening policy.”  

ASX – The ASX plunged 2.6 per cent on Wednesday with investors fearful of interest rate increases after poor CPI results were released. The market is down another 1.4% today and is likely to finish in the red for the week.  

S&P 500 – The largest US index, the S&P 500, has fallen after fears of inflation along with a warning from well respected hedge fund manager Ray Dalio, weighing the market down.  

 

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