There are concerns that the decision could lead to inflation, and US Treasury yields increased as markets moved to an implied 64 per cent chance that the US central bank will raise the Fed funds rate next month to 5.25 per cent.
The US benchmark West Texas Intermediate rose by up to 8 per cent, before settling around US$80 a barrel.
Tesla shares plunged by 6 per cent this morning after growing concerns about the company’s margins, with investors worrying that further price cuts would be needed to continue to drive sales. Tesla reported first quarter deliveries of 423k cars, with production of 441k cars.
Australia
The S&P/ASX 200 continued its rally from the week prior, going up by a further 0.6 per cent and recovering its losses following the Silicon Valley Bank collapse in early March this year.
Energy stocks were the clear winner of the day, following the surprise moves in the global oil market. Key winners included Karoon, which added 6.5 per cent, Woodside Energy, which climbed 2.7 per cent and Santos, rising 2.5 per cent.
The key event for the Australian market this week is likely to be the Reserve Bank of Australia’s announcement later today, in which it may decide to change or maintain the current cash rate. Interest rate futures are currently pricing in no change to current rates of 3.6 per cent, although some market economists have predicted a 25 basis point hike, which may surprise the market.
Building approvals for February were up 4 per cent month on month, slightly below market expectations which had expected a double-digit jump. The rise through the month was driven by private housing and a 23.4 per cent increase in public housing approvals, whilst multi-use approvals fell by almost 10 per cent.
New Zealand
Church payments systems company Pushpay has released its new indicative timeline for its ongoing takeover process.
New Zealand institutional shareholders in Pushpay had previously pushed back against the initial offer for Pushpay at $1.34 per share, forcing the potential buyers to come back to the market with a revised $1.42 per share offer.
The company has confirmed that it has scheduled its shareholder vote for April 27, with implementation or payment to occur between May 17 and 26.
One NZ, formerly known as Vodafone NZ, has announced a partnership with Elon Musk’s SpaceX to provide satellite-based cell coverage for New Zealanders – promising to end black spots in coverage by 2024.
One NZ has noted that while 98 per cent of the population has access to its network, almost half the country in terms of land still has no coverage.
The telco company has also pointed to the issues with cell towers in times of disaster, with SpaceX’s low earth orbit satellites providing a source of diversification.
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