ASX 200 soars as investors encouraged by highly expected interest rate cut, rebound on US markets after Moody's downgrade
The ASX 200 has surged on Tuesday as investors are buoyed by hopes of a rate cut from the Reserve Bank of Australia and markets bouncing back up in the United States.
Investors will have a close eye on the RBA's interest rate call at 2.30pm, where the central bank is highly expected to deliver the second cut this year and bring the cash rate below four per cent for the first time since 2023.
The market surged 0.7 per cent in the first 20 minutes of trading with Life360 up 2.3 per cent, Capstone Copper up two per cent and BlueScope Steel rising 1.6 per cent.
Investors are encouraged as money markets say there is a 99.5 per cent chance the RBA will drop the cash rate by 0.25 per cent, bringing it down half a per cent since the central bank began cutting rates after the pandemic.
In the US, major indexes slumped after opening on Monday before more than recovering following Moody's downgraded the US' credit rating due to ballooning debt and deficit.
The S&P 500 finished up 0.1 per cent, the Nasdaq was 0.02 per cent in the green and the Dow Jones was 0.3 per cent up on its Friday closing price.
In Europe, London's FTSE 250 Index finished down less than 0.1 per cent while Germany's DAX rose 0.7 per cent and the EURO STOXX 50 Index finished flat.
New Zealand's NZX 50 Index has risen 0.4 per cent since trading opened on Tuesday and Japan's Nikkei 225 is up 0.8 per cent.
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Perth Now
an hour ago
- Perth Now
Inflation warning as conflict in Middle East escalates
Iran's potential retaliation to US military strikes could lead to a surge in the price of fuel and higher inflation in Australia, economists say. Motorists have already seen a slight rise in the cost of fuel after the US launched strikes against three Iranian nuclear facilities. While Australian consumers have been told not to panic about the Middle Eastern unrest, escalating conflict in the region could lead to further price hikes, AMP chief economist Shane Oliver says. "The real risk would be if intervention by the US sets off retaliation by Iran that disrupts oil supplies," he told AAP. "If Iran do successfully block the Strait of Hormuz, then you'll end up with a bigger spike in oil prices and petrol and that will have a severe economic impact." Mr Oliver said petrol would rise by 25 cents per litre in the likely event oil prices skyrocketed to more than $100 a barrel. He said an increase in petrol costs could push up inflation, which would flow on to other parts of the economy. "If the oil price went to $100 to $150 a barrel and it's a much bigger boost to inflation, the Reserve Bank of Australia would be inclined to wait before cutting interest rates again," he said. "The price of airfares could go up, as well as plastic prices, which affects a lot of household goods." Australian Travel Industry Association chief executive Dean Long said airfares were not likely to increase immediately following the escalation in conflict in the Middle East. However, he said travellers heading through the Middle East on the way to Europe would likely face longer journeys. "The increase in congestion is causing delays," he told AAP. "With the narrowest flight path in recent memory - with Russia, Ukraine, Iran and Israel closed - the airspace is very narrow to get to Europe. "Beforehand, there were multiple ways to catch up delays and stay on times, but in reality, there is a very narrow window to catch up delays, and there is less room for error by the airlines." Mr Long said there had not been any major disruptions for Australian travellers so far and urged passengers not to cancel their flights. Prime Minister Anthony Albanese has backed America's intervention in the conflict between Iran and Israel. While Iran should not have access to nuclear weapons, Mr Albanese said a de-escalation was needed.
The Advertiser
2 hours ago
- The Advertiser
Wall Street gains as oil dips while Tesla surges
US stock indexes have rallied as investors looked past worries of potential crude supply disruptions after the United States' strikes on nuclear facilities in Iran while Tesla surged after the EV-maker launched robotaxis. Tesla's shares rose 9.5 per cent after it deployed a small group of self-driving taxis picking up paying passengers on Sunday in Austin, Texas. Meanwhile, oil prices dipped more than 1.0 per cent to $US76.2 per barrel, having touched a six-month high earlier, as oil and gas transit continued on tankers from the Middle East after US air strikes against Iran over the weekend. Iran has repeatedly threatened to retaliate against the US attacks but is yet to do so in a meaningful way. Equity markets have been pressured in recent days as the Israel-Iran attacks raised concerns about a wider conflict in the Middle East, disrupting oil prices and raising concerns about a resurgence in inflationary pressures. The benchmark S&P 500 index remains about 2.3 per cent below its record level. "I think the market is certainly in a holding pattern, waiting to see the level of Iran's response to the US weekend attacks," said Ross Mayfield, investment strategist at Baird. "There's a sense that investors are conditioned not to think that geopolitical conflicts in the Middle East will have a long-term impact on the market." US business activity slowed marginally in June while prices increased further amid US President Donald Trump's tariffs, indicating that inflation might rise in the second half of 2025. However, Federal Reserve vice chair for supervision Michelle Bowman, recently tapped by Trump as the central bank's top bank overseer, said the time to cut interest rates could be fast approaching and that she is growing more worried about risks to the job market, and less concerned tariffs will cause an inflation problem. In early trading on Monday, the Dow Jones Industrial Average rose 95.63 points, or 0.23 per cent, to 42,302.45, the S&P 500 gained 28.89 points, or 0.48 per cent, to 5,996.73, and the Nasdaq Composite gained 109.12 points, or 0.56 per cent, to 19,556.61. The focus will be on US core PCE data and final GDP reading this week, as well as Fed chair Jerome Powell's two-day semiannual testimony before Congress. The US central bank held interest rates steady in its June monetary policy meeting but flagged inflationary risks due to higher trade duties. In earnings, investors awaited fourth-quarter results from sportswear company Nike and parcel delivery firm FedEx, both expected later in the week. Among other movers, drug maker Eli Lilly rose 1.3 per cent. Its rival Novo Nordisk fell 5.4 per cent after detailed trial data on its experimental obesity drug CagriSema failed to impress investors. Fiserv's shares rose nearly 2.0 per cent after the fintech firm announced plans to launch a new digital asset platform. Northern Trust surged 8.6 per cent after a Wall Street Journal report said Bank of New York Mellon approached the asset and wealth manager for a potential merger. On the flip side, AI-server-maker Super Micro Computer dropped 4.6 per cent after it announced a private offering of $US2 billion ($A3.1 billion) five-year convertible bonds. Advancing issues outnumbered decliners by a 1.98-to-1 ratio on the NYSE and by a 1.32-to-1 ratio on the Nasdaq. The S&P 500 posted seven new 52-week highs and three new lows, while the Nasdaq Composite recorded 52 new highs and 71 new lows. US stock indexes have rallied as investors looked past worries of potential crude supply disruptions after the United States' strikes on nuclear facilities in Iran while Tesla surged after the EV-maker launched robotaxis. Tesla's shares rose 9.5 per cent after it deployed a small group of self-driving taxis picking up paying passengers on Sunday in Austin, Texas. Meanwhile, oil prices dipped more than 1.0 per cent to $US76.2 per barrel, having touched a six-month high earlier, as oil and gas transit continued on tankers from the Middle East after US air strikes against Iran over the weekend. Iran has repeatedly threatened to retaliate against the US attacks but is yet to do so in a meaningful way. Equity markets have been pressured in recent days as the Israel-Iran attacks raised concerns about a wider conflict in the Middle East, disrupting oil prices and raising concerns about a resurgence in inflationary pressures. The benchmark S&P 500 index remains about 2.3 per cent below its record level. "I think the market is certainly in a holding pattern, waiting to see the level of Iran's response to the US weekend attacks," said Ross Mayfield, investment strategist at Baird. "There's a sense that investors are conditioned not to think that geopolitical conflicts in the Middle East will have a long-term impact on the market." US business activity slowed marginally in June while prices increased further amid US President Donald Trump's tariffs, indicating that inflation might rise in the second half of 2025. However, Federal Reserve vice chair for supervision Michelle Bowman, recently tapped by Trump as the central bank's top bank overseer, said the time to cut interest rates could be fast approaching and that she is growing more worried about risks to the job market, and less concerned tariffs will cause an inflation problem. In early trading on Monday, the Dow Jones Industrial Average rose 95.63 points, or 0.23 per cent, to 42,302.45, the S&P 500 gained 28.89 points, or 0.48 per cent, to 5,996.73, and the Nasdaq Composite gained 109.12 points, or 0.56 per cent, to 19,556.61. The focus will be on US core PCE data and final GDP reading this week, as well as Fed chair Jerome Powell's two-day semiannual testimony before Congress. The US central bank held interest rates steady in its June monetary policy meeting but flagged inflationary risks due to higher trade duties. In earnings, investors awaited fourth-quarter results from sportswear company Nike and parcel delivery firm FedEx, both expected later in the week. Among other movers, drug maker Eli Lilly rose 1.3 per cent. Its rival Novo Nordisk fell 5.4 per cent after detailed trial data on its experimental obesity drug CagriSema failed to impress investors. Fiserv's shares rose nearly 2.0 per cent after the fintech firm announced plans to launch a new digital asset platform. Northern Trust surged 8.6 per cent after a Wall Street Journal report said Bank of New York Mellon approached the asset and wealth manager for a potential merger. On the flip side, AI-server-maker Super Micro Computer dropped 4.6 per cent after it announced a private offering of $US2 billion ($A3.1 billion) five-year convertible bonds. Advancing issues outnumbered decliners by a 1.98-to-1 ratio on the NYSE and by a 1.32-to-1 ratio on the Nasdaq. The S&P 500 posted seven new 52-week highs and three new lows, while the Nasdaq Composite recorded 52 new highs and 71 new lows. US stock indexes have rallied as investors looked past worries of potential crude supply disruptions after the United States' strikes on nuclear facilities in Iran while Tesla surged after the EV-maker launched robotaxis. Tesla's shares rose 9.5 per cent after it deployed a small group of self-driving taxis picking up paying passengers on Sunday in Austin, Texas. Meanwhile, oil prices dipped more than 1.0 per cent to $US76.2 per barrel, having touched a six-month high earlier, as oil and gas transit continued on tankers from the Middle East after US air strikes against Iran over the weekend. Iran has repeatedly threatened to retaliate against the US attacks but is yet to do so in a meaningful way. Equity markets have been pressured in recent days as the Israel-Iran attacks raised concerns about a wider conflict in the Middle East, disrupting oil prices and raising concerns about a resurgence in inflationary pressures. The benchmark S&P 500 index remains about 2.3 per cent below its record level. "I think the market is certainly in a holding pattern, waiting to see the level of Iran's response to the US weekend attacks," said Ross Mayfield, investment strategist at Baird. "There's a sense that investors are conditioned not to think that geopolitical conflicts in the Middle East will have a long-term impact on the market." US business activity slowed marginally in June while prices increased further amid US President Donald Trump's tariffs, indicating that inflation might rise in the second half of 2025. However, Federal Reserve vice chair for supervision Michelle Bowman, recently tapped by Trump as the central bank's top bank overseer, said the time to cut interest rates could be fast approaching and that she is growing more worried about risks to the job market, and less concerned tariffs will cause an inflation problem. In early trading on Monday, the Dow Jones Industrial Average rose 95.63 points, or 0.23 per cent, to 42,302.45, the S&P 500 gained 28.89 points, or 0.48 per cent, to 5,996.73, and the Nasdaq Composite gained 109.12 points, or 0.56 per cent, to 19,556.61. The focus will be on US core PCE data and final GDP reading this week, as well as Fed chair Jerome Powell's two-day semiannual testimony before Congress. The US central bank held interest rates steady in its June monetary policy meeting but flagged inflationary risks due to higher trade duties. In earnings, investors awaited fourth-quarter results from sportswear company Nike and parcel delivery firm FedEx, both expected later in the week. Among other movers, drug maker Eli Lilly rose 1.3 per cent. Its rival Novo Nordisk fell 5.4 per cent after detailed trial data on its experimental obesity drug CagriSema failed to impress investors. Fiserv's shares rose nearly 2.0 per cent after the fintech firm announced plans to launch a new digital asset platform. Northern Trust surged 8.6 per cent after a Wall Street Journal report said Bank of New York Mellon approached the asset and wealth manager for a potential merger. On the flip side, AI-server-maker Super Micro Computer dropped 4.6 per cent after it announced a private offering of $US2 billion ($A3.1 billion) five-year convertible bonds. Advancing issues outnumbered decliners by a 1.98-to-1 ratio on the NYSE and by a 1.32-to-1 ratio on the Nasdaq. The S&P 500 posted seven new 52-week highs and three new lows, while the Nasdaq Composite recorded 52 new highs and 71 new lows. US stock indexes have rallied as investors looked past worries of potential crude supply disruptions after the United States' strikes on nuclear facilities in Iran while Tesla surged after the EV-maker launched robotaxis. Tesla's shares rose 9.5 per cent after it deployed a small group of self-driving taxis picking up paying passengers on Sunday in Austin, Texas. Meanwhile, oil prices dipped more than 1.0 per cent to $US76.2 per barrel, having touched a six-month high earlier, as oil and gas transit continued on tankers from the Middle East after US air strikes against Iran over the weekend. Iran has repeatedly threatened to retaliate against the US attacks but is yet to do so in a meaningful way. Equity markets have been pressured in recent days as the Israel-Iran attacks raised concerns about a wider conflict in the Middle East, disrupting oil prices and raising concerns about a resurgence in inflationary pressures. The benchmark S&P 500 index remains about 2.3 per cent below its record level. "I think the market is certainly in a holding pattern, waiting to see the level of Iran's response to the US weekend attacks," said Ross Mayfield, investment strategist at Baird. "There's a sense that investors are conditioned not to think that geopolitical conflicts in the Middle East will have a long-term impact on the market." US business activity slowed marginally in June while prices increased further amid US President Donald Trump's tariffs, indicating that inflation might rise in the second half of 2025. However, Federal Reserve vice chair for supervision Michelle Bowman, recently tapped by Trump as the central bank's top bank overseer, said the time to cut interest rates could be fast approaching and that she is growing more worried about risks to the job market, and less concerned tariffs will cause an inflation problem. In early trading on Monday, the Dow Jones Industrial Average rose 95.63 points, or 0.23 per cent, to 42,302.45, the S&P 500 gained 28.89 points, or 0.48 per cent, to 5,996.73, and the Nasdaq Composite gained 109.12 points, or 0.56 per cent, to 19,556.61. The focus will be on US core PCE data and final GDP reading this week, as well as Fed chair Jerome Powell's two-day semiannual testimony before Congress. The US central bank held interest rates steady in its June monetary policy meeting but flagged inflationary risks due to higher trade duties. In earnings, investors awaited fourth-quarter results from sportswear company Nike and parcel delivery firm FedEx, both expected later in the week. Among other movers, drug maker Eli Lilly rose 1.3 per cent. Its rival Novo Nordisk fell 5.4 per cent after detailed trial data on its experimental obesity drug CagriSema failed to impress investors. Fiserv's shares rose nearly 2.0 per cent after the fintech firm announced plans to launch a new digital asset platform. Northern Trust surged 8.6 per cent after a Wall Street Journal report said Bank of New York Mellon approached the asset and wealth manager for a potential merger. On the flip side, AI-server-maker Super Micro Computer dropped 4.6 per cent after it announced a private offering of $US2 billion ($A3.1 billion) five-year convertible bonds. Advancing issues outnumbered decliners by a 1.98-to-1 ratio on the NYSE and by a 1.32-to-1 ratio on the Nasdaq. The S&P 500 posted seven new 52-week highs and three new lows, while the Nasdaq Composite recorded 52 new highs and 71 new lows.
Perth Now
3 hours ago
- Perth Now
Wall Street gains as oil dips while Tesla surges
US stock indexes have rallied as investors looked past worries of potential crude supply disruptions after the United States' strikes on nuclear facilities in Iran while Tesla surged after the EV-maker launched robotaxis. Tesla's shares rose 9.5 per cent after it deployed a small group of self-driving taxis picking up paying passengers on Sunday in Austin, Texas. Meanwhile, oil prices dipped more than 1.0 per cent to $US76.2 per barrel, having touched a six-month high earlier, as oil and gas transit continued on tankers from the Middle East after US air strikes against Iran over the weekend. Iran has repeatedly threatened to retaliate against the US attacks but is yet to do so in a meaningful way. Equity markets have been pressured in recent days as the Israel-Iran attacks raised concerns about a wider conflict in the Middle East, disrupting oil prices and raising concerns about a resurgence in inflationary pressures. The benchmark S&P 500 index remains about 2.3 per cent below its record level. "I think the market is certainly in a holding pattern, waiting to see the level of Iran's response to the US weekend attacks," said Ross Mayfield, investment strategist at Baird. "There's a sense that investors are conditioned not to think that geopolitical conflicts in the Middle East will have a long-term impact on the market." US business activity slowed marginally in June while prices increased further amid US President Donald Trump's tariffs, indicating that inflation might rise in the second half of 2025. However, Federal Reserve vice chair for supervision Michelle Bowman, recently tapped by Trump as the central bank's top bank overseer, said the time to cut interest rates could be fast approaching and that she is growing more worried about risks to the job market, and less concerned tariffs will cause an inflation problem. In early trading on Monday, the Dow Jones Industrial Average rose 95.63 points, or 0.23 per cent, to 42,302.45, the S&P 500 gained 28.89 points, or 0.48 per cent, to 5,996.73, and the Nasdaq Composite gained 109.12 points, or 0.56 per cent, to 19,556.61. The focus will be on US core PCE data and final GDP reading this week, as well as Fed chair Jerome Powell's two-day semiannual testimony before Congress. The US central bank held interest rates steady in its June monetary policy meeting but flagged inflationary risks due to higher trade duties. In earnings, investors awaited fourth-quarter results from sportswear company Nike and parcel delivery firm FedEx, both expected later in the week. Among other movers, drug maker Eli Lilly rose 1.3 per cent. Its rival Novo Nordisk fell 5.4 per cent after detailed trial data on its experimental obesity drug CagriSema failed to impress investors. Fiserv's shares rose nearly 2.0 per cent after the fintech firm announced plans to launch a new digital asset platform. Northern Trust surged 8.6 per cent after a Wall Street Journal report said Bank of New York Mellon approached the asset and wealth manager for a potential merger. On the flip side, AI-server-maker Super Micro Computer dropped 4.6 per cent after it announced a private offering of $US2 billion ($A3.1 billion) five-year convertible bonds. Advancing issues outnumbered decliners by a 1.98-to-1 ratio on the NYSE and by a 1.32-to-1 ratio on the Nasdaq. The S&P 500 posted seven new 52-week highs and three new lows, while the Nasdaq Composite recorded 52 new highs and 71 new lows.
