Aussie stock index hits all-time high as ‘fear of China’ fuels sell-off
AUSTRALIA’S major stock indexes have risen on the fear of China’s economic slowdown to new heights.
Australia’s S&P 500 index hit a record high on Wednesday, rising nearly 1 per cent to 4,744.1.
The Dow Jones Industrial Average rose 2.9 per cent, the S&P 500 rose 2 per cent and the Nasdaq Composite climbed 3 per cent.
Despite the positive mood, the Federal Reserve was quick to warn of a downside risk for the global economy.
“The Fed is still cautious on the risks of a sharp slowdown in China,” the Fed’s deputy chair Janet Yellen said on Wednesday.
There were also warnings from economists that the Federal Budget was “unlikely” to be passed by Parliament on Thursday, despite Mr Hockey’s commitment to it.
Mr Hockey has said the budget should be passed on to the Parliament as soon as possible.
But Mr Hockey has faced strong criticism from economists, who argue that he is taking his campaign for a budget surplus at a political risk.
Last week, the US Federal Reserve raised its benchmark interest rate by $50 a share, signalling that the Fed was raising its inflation target.
Analysts are forecasting that the US central bank will likely hold off raising rates until after the next US presidential election, which is set to take place in November.
Topics:financial-market,business-economics-and-finance,market-and_utilities,government-and.debt,economy,federal—state-issues,government,national-security,foreign-affairs,united-states,australiaFirst posted January 03, 2021 19:17:22Contact Ashley JaggerMore stories from New South Wales