Pre-Market Pulse 1st September: Gig Economy Reforms, The Cost to Consumers and the Future of UberEats

Overnight – Rate Stabilization and Economic Outlooks

Equities in the global market presented a mixed bag, with ASX SPI futures declining by 40 points or 0.6%, settling at 7235. Wall Street showcased varied results: the Dow and S&P experienced drops of 0.5% and 0.2% respectively, while Nasdaq reported a modest 0.1% gain. In New York, major firms like BHP and Rio faced slight downturns, whereas Atlassian, Tesla, Apple, and Amazon saw an increase, with Amazon leading the pack with a 2.2% increase. Concurrently, the AUD currency saw a 0.1% uptick, nearing the US65¢ mark. The Bloomberg dollar spot index also progressed by 0.3%.

In cryptocurrencies, Bitcoin’s value on bitstamp.net diminished by 4%, dropping to $US26,169. The yield of the US 10-year note experienced a minor decrease, settling at 4.11% by late afternoon in New York. On the monetary policy front, the Bank of England’s chief economist, Huw Pill, indicated a potential stabilization in UK interest rates to manage the prevailing robust inflation. He advocated for a consistent rate profile, termed “Table Mountain”, suggesting a preference for sustained rates over rapid fluctuations. Meanwhile, Bridgewater Associates’ Karen Karniol-Tambour expressed skepticism about the Federal Reserve’s pace in reducing rates. She emphasized that significant rate reductions typically necessitate a rapidly deteriorating economy, a scenario contrasting the current economic landscape.