Australian shares are set to open modestly higher, as futures trailed a broad rally in New York that pushed the Nasdaq 100 to a record high after oil extended its decline.
ASX 200 futures are pointing up 5 points or 0.1 per cent to 8540 by the close on Wall Street. The S&P 500 rose 1.1 per cent and the Nasdaq 100 climbed 1.5 per cent.
Both Brent crude and US oil were more than 5 per cent lower in late US trading as a fragile ceasefire between Israel and Iran mostly held. US oil has plunged nearly 15 per cent over the last two sessions.
The advance was checked in part by comments by US Federal Reserve chairman Jerome Powell to a congressional hearing that there’s still no rush to cut rates, and data showing that American consumer confidence continues to falter. He said that the Fed “has to be forward-looking” because forecasters continued to expect that tariffs would push inflation higher in the months ahead.
While markets point towards a rate cut in September, Morgan Stanley said the Fed will be on hold through the end of 2025. “We think cuts will start in March 2026. We forecast seven cuts next year to 2.5 per cent to 2.75 per cent.”
Source: https://www.afr.com/markets/equity-markets/asx-to-rise-nasdaq-rallies-towards-record-high-20250625-p5ma1h