Company Interview / the open: ASX to open lower, Fed holds rates

The local market is set to open slightly lower with ASX futures down around 0.1%, whilst global equity markets were mixed overnight as investors awaited the outcome of the US Federal Reserve policy meeting.

 The US Federal Reserve has held interest rates steady while signaling two more rate cuts this year. Given the imposition of tariffs, Fed Chair Jerome Powell said, a cost shock is coming, with producers, manufacturers and retailers all absorbing higher prices. The S&P 500 ended flat in what was a volatile session. 

Oil prices have settled higher, with investors considering the chance of supply disruptions from the Iran-Israel conflict and potential direct US involvement. Brent crude futures were at $76 a barrel, iron ore is little changed and copper has rebounded 1%. Gold prices dropped following the Fed’s decision, with spot gold down 0.4% at $3,374 an ounce. 

The US dollar traded higher against most major currencies but remained weaker against the Yen. The Australian dollar currently trades at US65.1c. 

Locally today the labour force data and population growth for the December quarter will be released.