ASX Live Coverage Summary – July 31, 2023
Welcome to our live coverage of the Australian Securities Exchange (ASX) for Thursday, July 31. Today marks the trial of a new format to enhance your experience, featuring high-frequency updates in the lead-up to the market opening, followed by more structured briefings throughout the trading day. We plan to wrap up our coverage around 3:00 PM AEST, so please refresh the page for the latest information.
Federal Reserve Holds Rates Steady
8:42 AM
The Federal Open Market Committee has made the decision to maintain interest rates at 4.25-4.50%, which aligns with market predictions. Noteworthy takeaways from the meeting include:
- A dissenting vote from Governors Waller and Bowman, who advocated for a 25 basis point cut.
- Fed Chair Jerome Powell altered his initial statement to reflect a more cautious view, stating, "economic activity moderated in the first half of the year," contrasting with previous expressions of solid economic growth.
- Powell suggested that the Fed’s stance might indicate their view on goods inflation, saying, “You could argue we are a bit looking through goods inflation by not raising rates."
- The probability of a rate cut in September has decreased from 63.3% to 45.7%.
Morning Market Overview
8:35 AM
In a quieter morning for traders, the ASX 200 futures have dipped by 21 points (-0.24%), following a consecutive decline in the S&P 500. The previous evening’s trading session was punctuated by several significant events:
- The Federal Reserve’s interest rate decision
- Earnings reports from major tech firms like Meta and Microsoft
- Instability attributed to potential tariffs linked to former President Trump’s administration
- Economic data releases from numerous countries
For those who are new to our coverage, you can catch up with today’s Morning Wrap for a comprehensive overview of the market and economic landscape.
In summary, the market faces potential volatility as traders digest the Fed’s latest decisions and various global economic signals. Stay tuned for continued updates as the day unfolds.
