Australian shares are poised to open higher after shares closed modestly higher in New York following another muted price report, though there are signs that the US labour market is starting to lose momentum.
Brent Crude edged above $US70 a barrel late in New York’s trading day. It traded modestly lower for most of the session despite President Donald Trump saying he sees “a chance of a massive conflict” between Israel and Iran, though he said he did not see that as “imminent”.
The producer price index rose 0.1 per cent from a month earlier. The median forecast in a Bloomberg survey of economists called for a 0.2 per cent increase. Excluding food and energy, the PPI also increased 0.1 per cent.
“Although we expect tariffs to eventually lead to higher inflation, repeatedly soft inflation prints could suggest weaker-than-expected tariff pass-through,” Evercore ISI’s Krishna Guha said.
That marginally reduces upside risk to inflation and lowers “a bit the bar for the extent of labour market weakness the Fed would need to see to cut in September”, Guha also said.
US equities ended higher in a broad advance, with utilities pacing eight of the S&P 500’s 11 industry sectors higher. Boeing slid 4.8 per cent, recovering from an opening drop after one of its aircraft crashed in India.
Source: https://www.afr.com/markets/equity-markets/asx-to-rise-wall-st-edges-up-oil-edges-lower-20250613-p5m73n