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The US economy unexpectedly contracted in the second quarter, with consumer spending growing at its slowest pace in two years and business spending declining, raising speculation the economy is on the cusp of a recession. Key points: Prices of groceries, gasoline and other basic necessities are rising at the fastest pace since 1981 Job growth averaged 456,700 per month in the first half of the year Joe Biden said: “We also see signs of economic progress in the second quarter” By some definitions, a second consecutive quarterly decline in gross domestic product (GDP) would be considered a “technical recession”. US President Joe Biden dismissed talk of a recession, however, pointing to a “historically strong” job market along with strong consumer spending and business investment. But contraction, on 0.9 percent annual rate last quarter, attracted widespread attention because of concerns about the growing economy. That could deter the Federal Reserve from continuing to increase inte

The energy sector fell 5.8 percent and materials stocks 5 percent. Beach Energy fell 8 percent to $1.61 and Woodside Energy 6.9 percent to $30.20. It was the sector’s worst one-day loss since May 2020. However, the big four banks rallied on the prospect of improving lending profits as they passed the Reserve Bank of Australia’s half a percentage point hike to the official interest rate. Selling stretched across Asian equity markets with Japan’s Nikkei 225 on track for a 1.1 percent loss, Hong Kong’s Hang Seng Index 2.3 percent and China’s CSI 300 Index 2 percent. Sentiment was shaken by news that Shanghai had launched mass COVID-19 testing in nine districts after detecting cases over the past two days, reigniting concerns about a return to lockdown in China’s financial hub. Citi warned a recession could lead to crude oil surging to $65 per barrel by year-end and falling further to $45 by the end of 2023, in the absence of intervention by OPEC+, and a decline in short-cycle oil invest