Company Interview / the open: ASX to follow Wall Street lower

The ASX is set to open slightly lower, as the ongoing conflict between Israel and Iran continues to weigh on sentiment, with US indices down and oil up as US President Donald Trump calls for Iran’s ‘unconditional surrender’. 

All S&P sectors were lower except for energy. In tech, Nvidia shares rose on a broker upgrade, whilst Apple shares fell after a US court overturned a $300 million patent verdict against the company. 

US retail sales fell 0.9% in May, which was the second drop in a row and the largest monthly drop since January. Meanwhile, motor vehicle sales were down as the rush to beat tariffs waned. Despite the drop, core retail sales increased 0.4%. 

The Federal Reserve will be considering the data at its two-day policy meeting, which has commenced. Traders are now pricing in one cut by October, however are expecting the Fed to hold rates in the 4.25-4.5% range. 

Crude oil futures bounced, with Brent crude hitting $76.50, rising more than 3%. Gold edged higher but gains were capped by the rising US dollar, and copper and iron fell along with iron ore which is down 1.7%. 

Today the Westpac leading index is due, and the CPI and PPI are due in the UK. Markets will be firmly focused on the Fed’s decision which will be released around 4am AEST.