The news: Australian shares are set to climb this morning after chip maker Nvidia led gains on Wall Street, becoming the world’s first US$4 trillion company, and as US Federal Reserve meeting minutes boosted hopes for further interest rate cuts this year.
The numbers: Updated at 7:30am AEST:
ASX futures: up 41 points, or 0.48%, to 8,571Wall Street: Dow Jones up 0.49%, S&P 500 up 0.61%, and Nasdaq up 0.94%Europe: CAC 40 up 1.44%, DAX up 1.42%, and FTSE 100 up 0.14%Spot gold: up 0.36% to US$3,314 per ounceOil prices: Brent flat at US$70.19/bbl, and US WTI down 0.06% to US$68.29/bblAUD: up 0.12% to 65.36 US centsBitcoin: up 0.37% to US$111,166.
The context: US stocks advanced overnight as tech megacap Nvidia became the first company in history to achieve a US$4 trillion ($6.1 trillion) market capitalisation.
Investor sentiment was also buoyed after minutes from the Fed’s mid-June meeting showed that most of its officials expect rate cuts will be appropriate later this year. The minutes showed that policymakers believe price shocks from new US tariffs will be “temporary or modest”.
Meanwhile, US President Donald Trump released a new batch of tariff letters on Wednesday, with duties set to take effect 1 August unless agreements are reached. He also said the US will impose a 50% tariff on imports from Brazil, which would represent one of the highest rates announced to date.