Company Interview / the open: ASX to climb ahead of cash rate decision

The local market is set to open higher this morning ahead of the Reserve Bank interest rate decision with ASX futures up 0.2%. This comes as global stocks rose overnight with European gains in healthcare and luxury stocks offsetting weakness in banks and energy. 

On Wall Street, the Nasdaq led the gains as investors bought megacap tech stocks despite the potential of a US government shutdown and hawkish remarks from Federal Reserve officials. AI chip leader Nvidia rose along with Microsoft, whilst Electronic Arts shares rallied after the game publisher agreed to a private equity takeover deal worth $55 billion. 

On the geopolitical front Israeli Prime Minister Benjamin Netanyahu has backed a US-sponsored Gaza peace proposal to end the war in the Palestinian enclave. The 20-point plan calls for a ceasefire, an exchange of hostages held by Hamas for Palestinian prisoners held by Israel, a staged Israeli withdrawal from Gaza and Hamas disarmament. 

The US dollar index is down 0.2% on the day, whilst the Australian dollar has risen to US65.7 cents. Locally today the Reserve Bank reveals its interest rate decision, whilst building approvals for August along with private sector credit growth will be released.