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ASX 200 opens 0.4% lower as US Fed officials advocate 'patience'

EditorOliver Gray
Published 12/04/2024, 08:19 am
© Reuters.
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Investing.com - The Australian Stock Exchange started 0.4% lower on Friday, following comments from Susan Collins, President of the Federal Reserve Bank of Boston, and John Williams, President of the New York Fed, suggesting that more time may be needed before the institution feels confident enough to start easing policies.

ASX futures were down by 26 points or 0.3% to 7823 as of 7am AEST. Collins, in her prepared remarks at the Economic Club of New York, stated that while recent data hadn't significantly altered her outlook, they did underscore uncertainties related to timing and the need for patience, indicating that disinflation might continue to be inconsistent. Williams echoed this sentiment, stating there was no immediate need to alter monetary policy.

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On Wall Street, US technology shares spearheaded gains, shifting focus to the upcoming earnings season. BlackRock Inc (NYSE:BLK), JPMorgan Chase & Co (NYSE:JPM), Wells Fargo & Company (NYSE:WFC), and Citigroup Inc (NYSE:C) are expected to announce their results after the Australian market closes.

Treasury United States 10-Year yields increased by two basis points to 4.57%. Meanwhile, the euro fell after the European Central Bank hinted that it's likely to cut rates in June after maintaining them overnight. Christine Lagarde, the bank's president, highlighted that the inflation situation in Europe diverges from that in the US.

Locally, market participants will be keeping an eye on data releases from New Zealand, Japan, and the UK before the US earnings season commences with the announcements from major Wall Street banks.

In other developments, AMP Ltd (ASX:AMP) is set to host its Annual General Meeting today, and Kogan.com Ltd (ASX:KGN) shares will commence trading ex-dividend. Furthermore, Nextdc Ltd (ASX:NXT), Australia's leading listed developer and operator of data centres, is planning to raise $1.32 billion to extend its operations in Sydney and Melbourne. The company's shares are expected to begin trading before Monday's market opening.

In market highlights, the Australian dollar rose by 0.4% to 65.37 US cents, while Bitcoin increased by 1.1% to $US70,506 as of 6.58am AEST. Iron ore prices also saw a 1.6% increase to $US108.35 a tonne. Conversely, Brent crude fell by 0.3% to $US90.24 a barrel, while spot gold rose by 1.7% to $US2,373.52 per ounce.

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