Weekend Q&A: The Fed takes the wind out of equities sails, for now!

The ASX200 ended last week up over 100-points but an aggressive pullback on Thursday following the ongoing hawkish rhetoric from the Fed dampened the overall mood/sentiment, however with 3 of the most influential central banks for the ASX having shown their hand last week the bad news may already be largely behind us for November, and potentially December:

The RBA lifted rates another modest 0.25% on Melbourne Cup Day while maintaining a balanced message – “the Board’s priority is to return inflation to 2-3%….. it is seeking to do this while keeping the economy on an even keel”.
The Fed hiked another aggressive 0.75% and risk assets did take Jerome Powell’s speech as hawkish but he did offer their 1^st glimmer of hope in many months – “rate peak has risen but the pace of hikes could slow”.
The BOE also hiked 0.75% plus they delivered a dismal outlook on the economy but equities didn’t seem to care – “the UK is poised for a recession that will last until mid-2024”.

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