📖 Your Q2 Earnings Guide: Discover the Stocks ProPicks AI Highlights to Jump Post-EarningsRead more

ASX 200 to open lower; RBA interest rate decision in focus

Published 17/06/2024, 08:11 am
© Reuters.

Investing.com - Australian shares are forecasted to start the week with a slight dip, mirroring Wall Street's performance due to economic concerns and political uncertainties in France, as market participants prepare for the Reserve Bank's (RBA) rate decision and commentary on Tuesday.

The RBA is expected to retain the cash rate for the fifth consecutive policy meeting. The central bank is seeking signs of sustainable decreases in price pressures in the face of a decelerating economy, a tight job market, and high inflation levels.

The RBA's mission to bring inflation back to target is further complicated by the slightly expansionary budget of the Albanese government, as per an RBA internal analysis. This comes at a time when wage growth is escalating due to imminent tax cuts and energy rebates.

By 8:15 am AEST (10:15 pm GMT) ASX 200 Futures were down by 0.6%. The Australian dollar traded at US66.13¢, following a 0.5% gain last week.

In addition to the RBA, seven other central banks, including the Bank of England, the Swiss National Bank, and Norway's Norges Bank, will hold their policy meetings this week.

Last Friday, the Dow Jones Industrial Average fell by 0.2%, the S&P 500 remained steady, and the NASDAQ Composite rose by 0.1%.

⚠️Stay up to date with the latest company news using InvestingPro! CLICK HERE to unlock access to AI-powered ProPicks, ProTips, and more!⚠️

Longer-dated US government bond yields have decreased, with the US 10-year Treasury yield at 4.22%. However, the policy-sensitive 2-year return rose by 2 points to 4.71%.

In Europe, stocks continued their widespread sell-off due to France's political uncertainties, causing the pan-European STOXX 600 to fall by 2.4% on the week, its largest single-week percentage drop of 2024.

Oil prices dipped slightly on Friday in response to a survey indicating declining US consumer sentiment. Despite this, Brent crude oil prices saw a near 4% increase over the week, the highest since April, as investors anticipate strong demand for crude oil and fuel in 2024.

Iron ore futures also experienced a slight rise of 0.2% to $US107.33 per tonne on Friday due to higher-than-expected production.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.