The catch-up process – and a rapid one is required given the delays so far – could destabilise markets and the economy. He also put the spotlight on inflation as a major risk to the economy and financial markets – not because the prospects for further price increases are inherently problematic (they aren’t) but because the Fed’s communication process and policy responses have been lagging realities. Woolies shares rose 0.4 per cent, while API shares popped 16 per cent in line with the share price offered by the grocery chain.ģ.44PM – Powell’s ‘transitory’ retreat is just the beginningīy retiring the word “transitory”, Federal Reserve chairman Jerome Powell did more than finally correct a gross mischaracterisation of inflation that he was wedded to for way too long. Shares in Wesfarmers rose 1.4 per cent following news Woolworths had launched a rival bid for Australian Pharmaceutical Industries.
Netwealth, another fintech, tumbled 6.5 per cent, the biggest decline among blue chips, while Xero, an accounting software provider, fell 5.1 per cent. The fall occurred on the same day the local buy now, pay later company said it would delay the crucial shareholder vote to seal the Square acquisition following a delay in approval from the Bank of Spain, one of a handful of regulators required to rubber-stamp the deal. The share price fall largely mirrored a 6.7 per cent fall for Square shares in the US. The tech sector cratered 3.2 per cent, driven by the 6.1 per cent tumble for Afterpay, which is the largest tech company among blue chips. The S&P/ASX 200 ended the day 0.1 per cent lower, retracing a morning decline that initially took the benchmark nearly 1 per cent below Wednesday’s closing price in a day marked by steep falls for tech shares. 4.15PM – ASX closes 0.1pc lower in tough day for tech