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Ten-Year Yield Surges To Nearly Three-Month High

Dynatrace Climbs 5%

Shares of technology company Dynatrace, Inc. (DT) are rising 5 percent on Tuesday’s trading. The stock has been on an upward trajectory since September 2, when it was announced that Dynatrace will replace American Eagle Outfitters Inc. (AEO) in the S&P MidCap 400.

Currently at $38.44, the stock has traded between $29.41 and $80.13 during the past 52 weeks.

Australia Hikes Rates By 50 Bps As Expected

The Reserve Bank of Australia raised its key interest rates by a half-percentage point on Tuesday to bring inflation back to the target and create a more sustainable balance of demand and supply in the Australian economy.

The policy board of the RBA, headed by Governor Philip Lowe, decided to lift the cash rate target by 50 basis points to 2.35 percent, the highest since late 2014.

Lowe said the board expects to increase interest rates further over the months ahead, but it is not on a pre-set path.

The size and timing of future interest rate increases will be guided by the incoming data and the Board’s assessment of the outlook for inflation and the labor market, Lowe added.

The central bank also increased the interest rate on Exchange Settlement balances by 50 basis points to 2.25 percent.

The board forecast inflation to be around 7.75 percent over 2022, a little above 4 percent over 2023 and around 3 percent over 2024.

At the same time, the domestic economy is continuing to grow solidly and national income is being boosted by a record level of the terms of trade, the board observed.

It is possible that the Bank will only slow the pace of tightening if the third quarter inflation figures due at end-October show a moderation in price pressures, Marcel Thieliant, an economist at Capital Economics, said. Nonetheless, the RBA will ultimately lift the cash rate to 3.6 percent.

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PHOTOS: 2022 Denver Chalk Art Festival in Golden Triangle neighborhood

The Denver Chalk Art Festival, which began in 2003, returned this past weekend for its 20th anniversary.

After COVID-19 caused the festival to be held in driveways and sidewalks around the city in 2020, the tradition returned last year with dozens of artists creating temporary chalk artworks at the Cherry Creek Arts Festival. Now, the popular and colorful festival’s new home will be in Denver’s Golden Triangle.

Car maker Aston Martin needs a £576m injection

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The luxury firm offered new shares at a hefty discount to net the funds.

It said it would use the extra cash to cut debts and boost its balance sheet.

The rights issue is part of a previously announced equity raising of £653.8million, making Saudi Arabia’s Public Investment Fund one of the company’s largest shareholders.

Russ Mould, investment director at broker AJ Bell, said: “This might simply be Aston Martin finding another piece of frayed rope to keep it afloat and avoid sinking completely into quicksand.”

Irish Regulator Fines Meta $400 Mln For Breaking Data Protection Laws

The Data Protection Commission, Ireland’s data privacy regulator, has reportedly fined Meta (META) the parent company of Instagram, a record fine of 405 million euros ($402 million) after the social media platform broke data protection laws.

According to reports, the fine was related to Meta violating the General Data Protection Regulation and how the data of children on the app is handled.

The report says that Instagram allowed users aged between 13 and 17 to operate business accounts on the platform, which showed the users’ phone numbers and email addresses. The DPC also found the platform had operated a user registration system whereby the accounts of 13-to-17-year-old users were set to “public” by default.

The DPC regulates Meta on behalf of the entire EU because the company’s European headquarters are in Ireland.

A DPC spokesperson said: “We adopted our final decision last Friday and it does contain a fine of €405 million. Full details of the decision will be published next week.”

Ten-Year Yield Surges To Nearly Three-Month High

Following the rebound seen in the previous session, treasuries showed a substantial move back to the downside during trading on Tuesday.

Bond prices fell sharply in early trading and remained firmly negative throughout the session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, surged 14.7 basis points to 3.340 percent.

The ten-year yield more than offset the 7.2 basis point drop seen last Friday, ending the session at its highest closing level in almost three months.

The sharp pullback by treasuries came as traders continued to express concerns about the outlook for interest rates ahead of comments from several Federal Reserve officials, including Fed Chair Jerome Powell, as well as the central bank’s Beige Book.

Adding to the worries about interest rates, the Institute for Supply Management released a report showing service sector activity in the U.S. unexpectedly grew at a slightly faster rate in the month of August.

The ISM said its services PMI inched up to 56.9 in August from 56.7 in July, with a reading above 50 indicating growth in the sector. The uptick surprised economists, who had expected the index to dip to 55.1.

The report is a positive sign for the economy but led to concerns the Fed will see the data as an indication that it can continue to aggressively raise interest rates.

Looking ahead, reaction to remarks by Fed officials, the Beige Book and a report on the U.S. trade deficit may drive trading on Wednesday.