Here are the headlines from the S&P/ASX 200 (INDEXASX: XJO)(ASX: XJO) and Australian finance circles on Wednesday morning, with the USA’s Federal Reserve interest rates again in the spotlight.
But first, here are the data points:
Australian Dollar ($A) (AUDUSD): 73.85 US cents
Dow Jones (DJI): up 0.2%
Oil (WTI): $US67.61 per barrel
Gold: $US1,227 per ounce
Australian Investing News
Making finance news, the USA’s central bank, the Federal Reserve, again flagged higher interest rates in the world’s largest economy. As reported by Marketwatch, Federal Reserve Chairman Jerome Powell expects to raise US interest rates once every 3 months.
“With a strong job market, inflation close to our objective, and the risks to the outlook roughly balanced, the FOMC believes that – for now – the best way forward is to keep gradually raising the federal funds rate,” Powell said to a US Senate Committee.
In share market news, Australian biotechnology company Mesoblast Limited (ASX: MSB) announced it has entered into an agreement with China’s largest pharmaceutical business, Tasly Pharmaceutical Group. The deal will see Tasly fund all development and commercialisation activities for Mesoblast’s MPC-150-IM and MPC-25-IC treatments.
Mesoblast CEO Silviu Itescu said the deal with Tasly builds on their research and brings in manufacturing expertise. “Tasly Pharmaceutical Group’s powerful combination of clinical, regulatory and manufacturing expertise, together with one of the largest commercial footprints in cardiology in China, makes it the ideal partner for Mesoblast and opens up the China market to our cardiovascular franchise,” Itsecu said.
Gold mining company Northern Star Resources Ltd (ASX: NST) released its June quarter update showing 575,121 ounces of gold produced in its 2018 financial year. Northern Star said its production run-rate exceeded 600,000 ounces per annum in the final quarter and will target an improved production result in its 2019 financial year.
Finally, in an ASX filing on Tuesday, software business Technology One Limited (ASX: TNE) said recent changes to accounting standards will have no impact on its cash flow and minimal impact on profit.
“We will continue to grow NPAT between 10% to 15% per annum going forward,” TechnologyOne CEO Edward Chung added.
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