Market Open: Broad rally on Bullock’s dovish rate stance, whispers of a new U.S.-Iran accord
Key Takeaways
- •ASX 200 futures are pointing to a 0.9% rise, which would lift the Australian market above 9,000 points at the open.
- •RBA Governor Michele Bullock signaled that further rate increases are unlikely in the near term as housing and labour conditions soften.
- •The June CPI reading is due at 11.30AM, and the Federal Reserve is expected to leave U.S. rates unchanged this week.
- •Rio Tinto is reporting half-year results this morning, alongside updates from Atlas Arteria, Mineral Resources, Northern Star, and Nickel Industries.
- •Red Mountain Mining expects a 10% rise in indicative pricing after starting exploration at its Pioneer tungsten project, while Great Western has halted drilling at Diorama after no significant copper or gold results were found.
At The Bell — Stocks are broadly higher this morning, with speculation that the U.S. and Iran are edging toward a new peace accord helping support the market. ASX 200 futures are pointing to a 0.9% rise at the open, which would lift the Australian market above 9,000 points.
Wall Street’s strength is also providing a tailwind, but local factors are doing much of the heavy lifting on Wednesday. RBA Governor Michele Bullock appeared to signal that further rate hikes are unlikely in the near term, telling Anika Foundation fundraisers in Sydney that housing and labour conditions are both softening. That matters for rate-sensitive parts of the market, while this morning’s June CPI reading at 11.30AM should help confirm how inflation is tracking alongside the RBA’s more cautious tone.
In the United States, the Federal Reserve is due to announce its latest rate decision this week, with most investors expecting rates to remain unchanged.
On the earnings and corporate updates side, Rio Tinto (ASX:RIO) will report half-year results this morning, and the mining giant is expected to influence sentiment across Wednesday trading, whether positively or negatively. In a session where the market is already being led by macro headlines, major resources updates can still shape sector-level moves and set the tone for the rest of the morning.
Atlas Arteria (ASX:ALX), Mineral Resources (ASX:MIN), Northern Star (ASX:NST), and Nickel Industries (ASX:NIC) are also releasing updates today.
Elsewhere, Red Mountain Mining (ASX:RMX) is set for a 10% rise in indicative pricing after telling shareholders this morning that systematic exploration has begun at the Pioneer tungsten project in Montana.
Great Western (ASX:GTE) has halted drilling at its Diorama target at Yerrida North after an AC search “did not return any significant copper or gold results.”
Morgans has also upgraded Whitehaven (ASX:WHC) to a “buy” following the company’s half-year update.
In foreign exchange, the Australian dollar is buying US 69.7c.
In commodities, the U.S. dollar remains the reference currency for pricing. Brent crude has continued to ease and is now at US$86.06 a barrel. Iron ore is down 0.1% to US$97.70 a tonne in Singapore. Gold is at US$4,030 an ounce, while U.S. natural gas futures are down at $2.62 per gigajoule.
That’s HotCopper’s Market Open. I’m Isaac McIntyre — happy trading today.
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