AU Morning Wrap | ASX 200 Eases from Record Highs; Woodside Inks LNG Deal, Harvey Norman Faces Class Action
G'day, mooers! Check out the latest news on today's stock market!
• S&P 500, Dow Break Records the Day Before Rate Decision
• ASX Falls Ahead of Fed; Oil to Rise
• Stocks to watch: WDS, HVN, SM1, MQG, PMT
Wall Street Summary
The market cooled in the afternoon after the S&P 500 and Dow Jones Industrial Averages hit record trading highs Tuesday morning before falling back. Only a couple of trading hours remain before the most exciting FOMC monetary policy meetings for years. The $S&P 500 Index (.SPX.US)$ was up 3 bps, the $Dow Jones Industrial Average (.DJI.US)$ fell 0.04%, and the $Nasdaq Composite Index (.IXIC.US)$ climbed 0.20%.
In macro, investors are looking toward the Wednesday FOMC Monetary Policy meeting, where the Treasury Futures market expects rate cuts, according to the CME FedWatch tool. On Monday, Former President of the New York Federal Reserve Bill Dudley wrote in Bloomberg Opinion that the FED should go for larger cuts on Wednesday.
"As I noted last Friday at a Bretton Woods Committee conference in Singapore, the logic supporting a 50-basis-point cut is compelling," he wrote. He said inflation is lower, and jobs are still secure, "Yet short-term interest rates remain far above neutral. This disparity needs to be corrected as quickly as possible."
AU Market Watch
Australian shares decline, mirroring a subdued Wall Street session as investors await the US Federal Reserve's policy decision early Thursday (AEST). The Australian dollar, trading at US67.57¢, may test US68¢ if the Fed cuts rates by 0.5%. Australian government bond yields rose in line with US Treasuries ahead of the Fed decision. The probability of a 50 basis point rate cut is at 63%, though strong US retail sales data has tempered expectations. Oil prices increased due to tensions in the Middle East, with Brent crude futures rising 1.3% to $US73.70 per barrel.
Crypto
As of latest data, $Bitcoin (BTC.CC.CC)$ is priced at $60,113, up by 3.21% in the past 24 hours, while $Ethereum (ETH.CC.CC)$ is priced at $2,326, up by 1.46% in the past 24 hours.
Stocks to Watch
Energy company $Woodside Energy Group Ltd (WDS.AU)$ has signed a 10-year LNG sale contract with Japan's JERA, following JERA's February commitment to the Scarborough LNG project in Western Australia.
Echo Law has initiated a class action lawsuit against retailer $Harvey Norman Holdings Ltd (HVN.AU)$, alleging the sale of "hundreds of millions of dollars" in "unnecessary and worthless" extended warranties.
New Zealand dairy giant Fonterra plans to invest $NZ150 million ($138 million) in a new cool store in Taranaki, in addition to its planned UHT and protein plants.
$Synlait Milk Ltd (SM1.AU)$'s special shareholders' meeting approved three resolutions, including issuing $NZ218 million ($200 million) in new equity capital to its two largest shareholders.
$Macquarie Group Ltd (MQG.AU)$ is considering selling a stake in UK IT services provider Wavenet, which could be valued at £1.2 billion ($2.4 billion), according to sources.
Additionally, $Patriot Battery Metals Inc (PMT.AU)$ will host investor meetings, while shares in Flight Centre, Auckland International Airport, and Service Stream will trade ex-dividend.
Economic Calendar (AEST)
4:00 pm: UK Inflation (Aug)
10:30 pm: US Building Permits (Aug)
4:00 am: Fed Interest Rate Decision
4:30 am: Fed Press Conference
Source: Dow Jones Newswires, AFR
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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