ASX opens lower as markets anticipate upcoming RBA rate hold
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More news: Australian shares fell at the open as markets await the RBA’s upcoming cash rate decision at 2:30pm AEST today, with markets widely anticipating that rates will be kept on hold.
The benchmark ASX 200 was down by 37.9 points, or 0.43%, to 8,876 at 10:35am AEST. Nine of the 11 sectoral indices opened in the red.
Energy (+1%) was the strongest performing sector at the open, rebounding from previous session losses, driven by a lift in Woodside (+0.6%), Santos (+0.6%), Paladin (+1.3%) and Nexgen Energy (+3.2%).
Reliance Worldwide (+3.6%), Deep Yellow (+2.5%), Predictive Discoveries (+2.3%) and Block (+2.1%) were among the top performing stocks across the ASX 200.
Elsewhere, consumer discretionary (-1.3%) was the weakest performing sector, weighed down by Wesfarmers (-1.9%), Aristocrat (-1%), Light & Wonder (-1.4%) and Eagers Automotive (-1.7%).
IperionX (-18.9%), Karoon Energy (-14.2%), Alcoa Corporation (-6.9%) and Netwealth Group (-3.9%) were also among the worst performers at the open.
Australian shares to open lower despite US-Iran deal, RBA in focus
The news: The Australian sharemarket is set to open lower despite Wall Street rallying overnight, as investors welcomed the preliminary US-Iran agreement to end the conflict and reopen the Strait of Hormuz, which helped ease inflation concerns and pushed oil prices lower.
The numbers: Updated at 7:50am AEST:
- ASX futures: down 98 points to 8,827 points
- Wall Street: Dow Jones up 0.92%, S&P 500 up 1.65%, Nasdaq up 3.07%
- Europe: FTSE 100 down 0.39%, CAC 40 up 0.40%, DAX up 1.05%
- Spot gold: up 2.08% to USD4,309 per ounce
- Oil prices: Brent down 4.95% to USD83.00/barrel, US WTI down 4.46% to USD81.09/bbl
- AUD: up 0.33% at 70.71 US cents
- Bitcoin: up 0.98% to USD66,357.
The context: All three major US indices rallied on Monday, extending gains for a third consecutive session as investors returned to risk assets after Middle East tensions and a pullback in AI-related stocks that had put Wall Street’s record run on pause more than a week ago. The Nasdaq rose 3%, while the Dow Jones closed at a record high.
SpaceX shares surged 20% on its second day of trading, building on Friday’s 19% gain and adding about USD412 billion ($580 billion) in market value. The stock closed at USD192, more than 42% above its IPO price of USD135.
Brent crude fell 4.9% to USD83 a barrel, its lowest close since the early stages of the conflict in March, after Trump and JD Vance reportedly signed an electronic memorandum of understanding with Iran. A senior US official said US and Iranian officials are expected to meet in Switzerland on Friday (ET) to formally sign the agreement.
Elsewhere, markets expect the US Federal Reserve to leave interest rates unchanged this week, although futures markets are still pricing a 42% probability of a 25-basis-point rate hike by the end of the year, according to CME Group’s Fedwatch tool.
Locally, the Reserve Bank of Australia is widely expected to leave interest rates unchanged when it announces its decision at 2.30pm AEST today.
