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Market Opener - 15 Jun 2017

Local Markets Commentary

Australian shares are expected to be pushed lower at the open on Thursday following a pullback on Wall Street after the US Fed raised interest rates by 0.25% to a new range of 1-1.25%. There was also a slide in the oil and gold price.

Yesterday Australia's S&P/ASX 200 Index climbed 1.1 per cent to its highest since May 16.

In overnight commodities trade, gold slipped and oil fell to the lowest price since November as weaker demand at the start of the US summer driving season led to another increase in stockpiles.

By contrast China's iron ore futures bounced back from a seven-month low yesterday, tracking a recovery in steel prices. Analysts believe the rebound may help stabilise spot iron ore prices that hit their lowest level in a year this week.

The $A rose 0.7% to US75.88¢ after Wall Street’s close.

Overseas Market Commentary

US stocks edged lower after the US central bank announced its second interest rise in three months.

The Fed cited continued domestic economic growth and job market strength as it proceeded with its first tightening cycle in more than a decade.

It said it would begin cutting holdings of bonds and other securities this year.

Technology stocks also slid back overnight, which pulled down the Nasdaq Composite.

In Europe, energy stocks fell on tumbling crude prices and banks were hit after weak US data raised questions over future rate hikes in the world's biggest economy.

15/06/2017 7:55:32 AM

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