Australian shares are poised to fall. US equities tumbled sharply after Federal Reserve chairman Jerome Powell signalled he\u2019s unconvinced of a pressing need to cut rates.<\/p>\n
Meta and Microsoft are set to report results after Wall Street\u2019s closing bell at 6am AEST.<\/p>\n
The S&P 500, coming off its best streak of gains since 2020, is about to enter what has historically been its toughest stretch of the year.<\/p>\n
The US economy expanded an annualised 3 per cent pace in the June quarter. However, economists were wary of reading too much into the print. <\/p>\n
\u201cWe retain our outlook for a slowdown in US GDP growth in 2024, as restrictive trade and immigration policies outweigh the benefits from fiscal policy and deregulation,\u201d Morgan Stanley\u2019s Michael Gapen wrote in a note.<\/p>\n
\u201cPrior to this report, we were forecasting Q4\/Q4 growth of 0.8 per cent in 2025; we now expect 1.0 per cent, reflecting the stronger 2Q out turn but no extrapolation into later quarters. We continue to expect 1.1 per cent growth in 2026.\u201d<\/p>\n
Market highlights<\/p>\n
ASX futures are pointing down 45 points or 0.5 per cent to 8670.
All US prices near 3.10pm New York time.<\/p>\n
*Bloomberg pricing<\/p>\n
AUD -1.2% to US64.31\u00a2Bitcoin -1.6% to $US115,956On Wall St: Dow -0.7% S&P -0.4% Nasdaq -0.2%VIX +0.73 to 16.71Gold -1.5% to $US3277.81 an ounceBrent oil +1.2% to $US73.39 a barrelComex copper -17.4% to $US4.6460Iron ore -0.6% to $US102.10 a tonne10-year yield: US 4.38% Australia 4.25%Today\u2019s agenda<\/p>\n
Quarterly reports expected on Thursday from Beach Energy, Liontown Resources and Origin Energy.<\/p>\n
RBA deputy governor Andrew Hauser will participate in a fireside chat at the Barrenjoey Economic Forum, Sydney at 9.20am AEST.<\/p>\n
A wave of data is set for release at 11.30am AEST, including June retail sales, building approvals, private sector as well as import and export price data. NAB said its retail transactions data suggests a strong rise in the month and \u201cwe have pencilled in a 1.0 per cent month-over-month increase\u201d.<\/p>\n
As for overseas, Japan will release June retail sales and industrial output, China will release manufacturing and non-manufacturing PMIs for July and the Bank of Japan will hold a policy meeting. Later, the US will release June personal spending and core PCE price data, a quarterly employment cost index and weekly jobless claims.<\/p>\n
On the BoJ decision, TD Securities said: \u201d US-Japan trade deal was struck, but we expect the BoJ to stand pat this month, holding the target rate at 0.5 per cent.<\/p>\n
\u201cAfter the poor showing of the ruling coalition in the Upper House elections, PM Ishiba is facing calls to step down and Japan is likely to enter a phase of political uncertainty. That said, Governor Ueda may signal a hike in October is still on the table as inflation is running at a 30-year high and we will get more clarity on both trade and politics then.\u201d<\/p>\n
Top stories<\/p>\n
Rio Tinto boss defends lithium push as earnings slump cuts dividend<\/a> | The country\u2019s biggest iron ore exporter will pay its lowest dividend since 2018 after lower prices and weaker sales volumes hurt its half-year bottom line.<\/p>\n Trump hits India with 25pc tariff, penalties for buying Russian oil<\/a> | India \u201cis our friend\u201d, the US president said on his Truth Social platform, but its tariffs \u201care far too high\u201d on US products.<\/p>\n Atlassian gang back together as Farquhar hits Canberra to spruik AI<\/a> | The billionaire co-founders of the software giant reunited at the National Press Club, setting aside long speculation of a rift in their relationship.<\/p>\n Economic summit could create momentum for $3m super tax plan<\/a> | A broader push for higher taxes at the productivity roundtable in August could soften hostility towards the proposed super tax, the government believes.<\/p>\n