6 things Australian traders will be talking about this morning

Andrew Nabbout of Australia winds up for a scissor kick ahead of this week’s World Cup. (Photo by Robert Cianflone / Getty Images)

Good morning.

To the scoreboard:

  • Dow: 25,320.73 -1.58 (-0.01%)
  • S&P 500: 2,786.85 +4.85 (+0.17%)
  • AUD/USD: 0.7575 +0.0003 (+0.04%)
  • ASX200 SPI futures (June contracts): 6,047 (-8)

1. Global stocks traded flat as the US Fed’s two-day interest rate meeting got underway, with markets expecting the central bank to hike rates by 25 basis points tonight. Futures traders have marked the ASX slightly lower ahead of this morning’s open.

2. Ahead of the Fed’s rates announcement, there was a strong inflation print in the US overnight which showed consumer prices rose last month at the fastest pace in six years.

3. US 10-year bond yields closed higher at 2.965% and the USD strengthened across the board. Gold and oil prices were steady, while bitcoin slipped by another 5% after heavy falls to start the week. It’s trading at around $US6,500 this morning.

4. In deal news, a US Judge has cleared the way for a $US85 billion merger of AT&T and Time Warner. The deal was initially blocked under anti-trust laws, and has the potential to reshape the US media landscape.

5. Meanwhile, Tesla is planning to lay off 3,000 salaried employees, or 9% of its total staff. Shares of the electric-car maker rose on the news and finished 3.2% higher, as the tech-focused NASDAQ index closed at yet another record high.

6. Drop the volume: This is worth a look ahead of the 2018 World Cup, which kicks off in Russia on Thursday night. Two-thirds of matches will be played in trading hours for Europe and Latin America, and research indicates that stock trading volumes drop by as much as 55% when a given country’s team is playing.

Have a great day.

Local data calendar:

  • Westpac monthly consumer confidence index (10:30am AEST)
  • Speech by RBA Governor Lowe at the Ai Group – “Productivity, Wages and Prosperity” (1:20pm AEST)

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