A new record of US mortgage rates
The average 30-year mortgage rate reached 7.09%, the second-highest since 2001, following a U.S. government debt downgrade. The mortgage applications index declined by 3.1% to 194.5, a six-month low. The Federal Reserve’s aggressive interest rate hikes may be impeding home price cooling, but increased mortgage rates and reduced demand may be beneficial for shelter prices…
CPI inflation data pulling down many of US stocks
Wall Street’s main indexes dipped on Wednesday due to critical inflation data and Fed remarks. Rate-sensitive megacap growth and technology firms like Nvidia, Apple, and Tesla fell 1.3% to 4.6%. The Federal Reserve may keep interest rates constant until economic data changes. The July CPI is expected to show a small year-over-year acceleration, with consumer…
Commonwealth Bank announced final dividend and a stock buyback
Australia’s largest lender, Commonwealth Bank of Australia, reported a record annual profit due to rising interest rates and increased living costs. The bank set aside $A1.47 billion more in provisions due to ongoing cost of living pressures and rising interest rates. Cash earnings for the year ended June 30 grew 6% to A$10.16 billion, slightly…
Certain bank’s still facing highly risk
Moody’s downgraded 27 lenders and warned of downgrading many major banks due to rising interest rates, funding expenses, and a recession. The system remains highly rated, but analysts acknowledge headwinds and caution against undercapitalization or underfunding. The downgrades were due to falling bank profitability in the future quarters, and the impact of rising interest rates…
Expenses and unemployment are rising on Australia’s economic
Australia’s top banks, Commonwealth Bank of Australia, National Australia Bank, Westpac, and ANZ Group, may post weaker profit margins in the June quarter due to rising expenses and unemployment. The Reserve Bank of Australia has left rates constant at 4.1%, and analysts are monitoring for rising bad debt rates. Mortgage competition has reduced profitability risk…
Bad debts warned on South Africa’s Bank
South Africa’s top five lender, Nedbank Group, warned that its bad debts would remain high for the rest of the year and may fail its 2025 financial projections. However, shares rose 2.5% in early trading, and CEO Mike Brown forecasted a decline in problematic loans from the first half. The bank’s well-capitalized, cautious lending, and…
Job loses and salary reduction became fear on China’s
The People’s Bank of China, the National Bureau of Statistics, and other government agencies have dismissed deflation fears. Similarly, Chinese analysts avoid discussing deflation in public. This year’s low prices were caused by the pandemic’s inventory accumulation and optimism after Covid restrictions were lifted. Some economists forecast that consumer inflation will remain low for a…
The effects of China’s deflation
Businesses in China are feeling the effects of deflationary pressure as the Chinese economy slows, which could threaten Beijing’s stimulus initiatives if consumers put off making purchases. Since February, demand has dropped for Nie Xingquan, a manufacturer of hand-made leather shoes; as a result, several stores have sold out of their existing inventory rather than…