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ASX Live Coverage Summary: Tuesday, June 17
Welcome to our ASX live updates for today. We’re testing a new format for timely coverage, featuring a wealth of posts pre-market and occasional updates throughout the trading day. Remember to refresh regularly for the latest information, and feel free to provide feedback through our survey.
Federal Reserve Keeps Rates Unchanged
8:55 am – The Federal Reserve has maintained interest rates steady for the fourth consecutive meeting, aligning with market predictions. Here are the notable points from the June Summary of Economic Projections:
- The median dot plot anticipates two rate cuts of 25 basis points by the end of the year.
- The 2026 median interest rate forecast has increased from 3.4% to 3.6%.
- The 2027 median interest rate projection now stands at 3.4%, up from 3.1% previously.
- Overall, interest rate expectations from the Fed remain mostly stable but exhibit a slight hawkish tilt for 2026-2027.
- The US GDP forecast for 2025 has been downgraded from 1.7% to 1.4%.
- Inflation expectations for the same year have risen from 2.7% to 3.0%.
- Unemployment is projected to climb to 4.5% by year-end, a slight rise from the March forecast of 4.4%.
- The Fed has revised its wording, confirming that "unemployment remains low," rather than "has stabilised at a low level."
Market Drivers for Today
8:35 am – A variety of developments are influencing stock market movements, though many have not resulted in significant changes:
- Ongoing conflict continues in Iran and Israel, now into its sixth day, with no major escalation noted.
- Market attention remains on potential US involvement in the conflict.
- The Fed’s decision to hold rates steady and its economic forecasts signal possible rate cuts later this year.
- Projections concerning rates for 2026-2027 suggest a somewhat hawkish outlook.
- No substantial progress has emerged from the recent G7 meeting regarding trade tariffs or agreements.
Morning Market Overview
8:30 am – The S&P/ASX 200 futures are currently down by 20 points (-0.23%), following a turbulent session overnight, where key US indices displayed mixed results and closed lower from their peaks. If you’re new to our coverage, be sure to catch up with our Morning Wrap for key insights and trends.
Feel free to check back regularly for the latest updates on the ASX and other market activities.
