Australian dollar rises on US-China trade talks

ABC NEWS (Australia)

The local share market followed Wall Street higher on Monday after better-than-expected US inflation data and progress in trade talks between the US and China over the weekend.

Transcript

00:00The US consumer price index in September was only a bit better than expected, 3% versus

00:073.1% expected, but it was enough for markets to lock in a rate cut when the US Federal

00:13Reserve meets tomorrow for two days.

00:15As a result, the US share market went up more than 1% on Friday and there were strong gains

00:19in Asia today, and ours followed suit with mining and energy stocks, retailers and banks

00:24all going up.

00:26On the downside, software firm Nuix Limited said that its CEO of four years was leaving

00:30and that an interim boss was being brought in from outside.

00:34Investors had many questions about this, but generally decided to sell first.

00:38There's a lot of discussion these days about whether the US share market is in a bubble

00:42or not.

00:44This chart compares the NASDAQ index in the US from the two seminal moments of the internet

00:48bubble in the 1990s and this one.

00:51That is, the release of internet browser Netscape in 1994 and the release of ChatGPT in 2022.

00:59It suggests that this one might have some way to go.

01:03But this graph of the relationship of all American share prices to GDP paints a slightly different

01:09picture.

01:10At 223%, it's not far off double what it was at the peak of the internet bubble in 2000.

01:18The market and the economy, or at least the employment part of it, parted ways when ChatGPT

01:23was born.

01:24Companies are making tons of money, especially AI ones, as reflected in the prices of their

01:29shares.

01:30But job openings are heading south.

01:32Commodity prices were pretty steady over the weekend, apart from solid gains by the two

01:36big cryptos, Bitcoin and Ethereum.

01:39And the Aussie dollar edged a bit higher, with the US dollar easing into tomorrow's Fed meeting.

01:46And that's finance.

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