Wall street’s three main indices rose yesterday as the Turkish lira moved away from an all-time low. Easing fears of broader financial contagion for now. Lira’s freefall may have stopped, but Turkey is yet to tackle the fundamental problems it faces, and this has kept market sentiment subdued.
The S&P 500 Index rose for the first time in five days amid thin summer trading, while the US dollar held at a 14-month high. The strength of the greenback was compounded by the Euro’s fall, which has been dogged by potential risks to European banks from the financial turmoil in Turkey.
Closer to home, Australia’s wage growth has continued to tread near record lows despite a solid expansion in the number of jobs over the past two years. Wage growth in Australia has grown at an annual rate of 2.1 per cent. While the result is the strongest quarterly rise since March 2014, most workers would notice little change once inflation is taken into account.