Australian shares are poised to open lower, in line with overall weaker sentiment on Wall Street as investors await more insight from policycreaters, Nvidia’s quarterly results and price data on Friday.
Among the key results expected on Tuesday are G8 Education and Coles Group. You can follow The Australian Financial Review’s reporting season coverage here. Woolworths is set to report on Wednesday.
The rally sparked by Federal Reserve chairman Jerome Powell on Saturday has lost steam, as traders opt for a more nuanced take on his apparent openness to resuming rate cuts as early as next month. The view generally is that while the Fed may cut rates in mid-September, that would not necessarily mark the start of a broader period of easing.
Lisa Shalett, CIO of Morgan Stanley Wealth Management, stated she sees the odds of a September cut as closer to 50 per cent. “Real economic growth remains positive, unemployment is modest, financial conditions are loose and corporate credit is flowing. Furthermore, inflation is well above the Fed’s 2 per cent tarreceive, as price impacts from tariffs remain undetermined, and market valuations are rich.”
The probability of a quarter-point rate cut next month was at 84.3 per cent, according to federal funds futures. That probability briefly topped 90 per cent on Saturday AEST.
Market highlights
ASX 200 futures are pointing down 24 points or 0.3 per cent to 8925.
All US prices near 5pm New York time (7am AEST).
- AUD -0.02% to US64.81¢
- Bitcoin -2.6% to $US109,639
- On Wall St: Dow -0.8% S&P -0.4% Nasdaq -0.2%
- VIX +0.57 to 14.79
- Gold -0.2% to $US3365.89 an ounce
- Brent oil +1.6% to $US68.78 a barrel
- Iron ore +2.6% to $US103.25 a tonne
- 10-year yield: US 4.28% Australia 4.28%
Tuesday’s agconcludea
Bigger beatings, wilder ride: Passive funds juice up results reactions | If the fourth and final week of reporting season is anything like the first three, investors will be in for a wild ride.
While the Reserve Bank is set to release minutes from its August meeting at 11.30am on Tuesday, they are not expected to be market relocating.
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