Australian shares opened modestly higher but is trading lower near noon, tracking a positive finish in New York as investors assessed comments from several US policymakers regarding the interest rate outlook. At 11:45am, the S&P/ASX 200 is 0.14 per cent lower at 8,141.40. Overnight, US markets saw the Dow Jones rise by 0.2 per cent, the S&P 500 by 0.3 per cent, and the Nasdaq by 0.1 per cent, with the S&P 500 resetting its closing record high for the third consecutive session.
Attention in Australia is on the Reserve Bank's cash rate decision, expected to remain unchanged, along with Governor Michele Bullock’s subsequent press conference. In commodities, iron ore futures in Singapore surged 3.9 per cent to $US92.90 a tonne following a rate cut by the People’s Bank of China, while gold reached a record high of $US2634.90 an ounce. The Australian dollar rose to US68.53¢, the highest level this year, and Bitcoin remained above $US63,000. US policymakers indicated a willingness to consider rate cuts as inflation approaches target levels.
The SPI futures are pointing to a fall of 4 points.
Best and worst performers
The best-performing sector is Materials, up 1.46 per cent. The worst-performing sector is Consumer Staples, down 1.92 per cent.
The best-performing large cap is Mineral Resources (ASX:MIN), trading 4.41 per cent higher at $38.38. It is followed by shares in Pilbara Minerals (ASX:PLS) and South32 (ASX:S32).
The worst-performing large cap is Coles Group (ASX:COL), trading 2.42 per cent lower at $18.14. It is followed by shares in Woolworths Group (ASX:WOW) and James Hardie Industries plc (ASX:JHX).
Commodities and the dollar
Gold is trading at US$2654.40 an ounce.
Iron ore is 2.2 per cent lower at US$89.35 a tonne.
Iron ore futures are pointing to a 0.89 per cent rise.
One Australian dollar is buying 68.47 US cents.
