Company Interview / the open: Why Zach's dialed back risk

The local market set to open lower this morning with ASX futures off 0.1% ahead of the Reserve bank decision on interest rates, meanwhile Wall Street's main indexes ended lower as investors awaited US inflation data. 

Shares of Nvidia and Advanced Micro Devices were in focus on news that the semiconductor giants had agreed to give the US government 15% of revenue from sales of their advanced chips to China. 

President Trump has signed an executive order extending a tariff truce with China by another 90 days. Imports from China are currently subject to a 30% tariff. And Federal Reserve member Michelle Bowman says she favours three rate cuts this year, mentioning that a cut at the next meeting in September, “would help avoid a further unnecessary erosion in labour market conditions.”

The US dollar firmed ahead of the inflation report, whilst the Australian dollar is weaker at US65.1c. Ahead locally today the Reserve Bank is widely expected to cut the cash rate by 25bp to 3.60%.