A blurred photo of the share trading boards at the Australian stock exchange

ASX rises, Wall Street slips as Jerome Powell says US recession is a ‘possibility’

The Australian equity market edged higher, with gains in financials and technology stocks offsetting heavy losses in energy and mining companies.

The ASX 200 index rose 0.4% to 6,534 points as of 12:10 a.m. AEST on Thursday.

Some of the performing stocks today were James Hardie (+4.7pc), Virgin Money UK (+4.5pc), Blackmores (+4.5pc), Metcash (+4.3pc) and Insurance Australia Group (+4pc).

On the other hand, gold miners St Barbara (-12.7pc), Ramelius Resources (-8.7pc) and Regis Resources (-4.1pc) fell sharply, along with Liontown Resources (- 6.2pc), Champion Iron (-5.7pc) and Novonix (-5.3pc).

US markets were weighed down by comments on inflation from Federal Reserve Chairman Jerome Powell, who appeared before the Senate Banking Committee on Wednesday (local time).

He said the Fed was “strongly committed” to bringing down inflation, which had hit a 40-year high, while trying not to cause a recession in the process.

However, Mr Powell said achieving a ‘soft landing’ for the US economy would be ‘very difficult’.

Fed Chairman Jerome Powell was asked about the risks of a recession in the United States.(Reuters: Carlos Barria)

The Fed Chairman said he thought the US economy was currently strong, but acknowledged that a recession could come.

“And, frankly, the events of the last few months around the world have made it more difficult for us to achieve what we want, which is 2% inflation and a still strong job market.”

The UK is also struggling with the rising cost of living. The latest figures showed that inflation had reached 9.1% in May. a new high of 40 years for the UK economy.

‘Global forces’ sink Australian dollar

The Australian dollar was buying 69.1 US cents, after falling 0.8% overnight.

Job , updated

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