Australia Rate Cut Lifts Shares Down Under
Tweet Send to a Friend
The Reserve Bank of Australia cut its benchmark interest rate by a quarter percentage point to 3.5 percent. Data compiled by Bloomberg showed a 40 percent chance of a larger cut to 3.25 percent.
In statements, Governor Glenn Stevens said "Overall labour market conditions firmed a little, notwithstanding job shedding in some industries, and the rate of unemployment remains low. Nonetheless, both households and businesses continue to exhibit a degree of precautionary behaviour, which may continue in the near term."
iShares MSCI Australia Index (NYSE: EWA), an ETF that tracks the Australian equity market, is trading 0.7 percent higher early on Tuesday. CurrencyShares Australian Dollar Trust (NYSE: FXA), an ETF that tracks the exchange rate between the Australian dollar relative to the U.S. dollar, is also trading higher today.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
In statements, Governor Glenn Stevens said "Overall labour market conditions firmed a little, notwithstanding job shedding in some industries, and the rate of unemployment remains low. Nonetheless, both households and businesses continue to exhibit a degree of precautionary behaviour, which may continue in the near term."
iShares MSCI Australia Index (NYSE: EWA), an ETF that tracks the Australian equity market, is trading 0.7 percent higher early on Tuesday. CurrencyShares Australian Dollar Trust (NYSE: FXA), an ETF that tracks the exchange rate between the Australian dollar relative to the U.S. dollar, is also trading higher today.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- Buy Emerging Market Index (EEM) Calls to Position for a Rebound - MKM Partners
- World Bank Eases Global Growth Outlook for FY13
- 'Follow the Dollar' - Art Cashin
Create E-mail Alert Related Categories
ETFs, Forex
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
