Australian shares could open the week trading lower following Wall Street’s first fall in seven sessions.
The S&P and New York Stock Exchange posted declines as Federal Reserve officials warned further rate hikes were likely. Federal Governor Chris Waller said inflation is “not moving” and more tightening is likely to be required.
Tech giant Microsoft reversed nearly two per cent from an all-time high, trading at US$346.62 per share. Tesla stocks gained a near-two per cent boost to US$260.54 apiece.
The US stock market is now entering a pause for the June 19th public holiday.
Back home, it appears the Reserve Bank is likely to keep hiking interest rates. RBA forecasts show the unemployment rate will need to reach around 4.5 per cent before inflation will be back within its target range of two to three per cent.
Financial markets are estimating a 60 per cent chance the RBA will raise rates again next month.
The Australian dollar climbed higher. One Aussie dollar is buying 69 US cents and 54 British pence.
To commodities, and iron ore continued to gain momentum, driven by hopes for more stimulus from Beijing. Iron ore is trading at US$117 per tonne.