Company Interview / the open: ASX to rally after Fed cuts

The local market is set to open higher with ASX futures up 1%, as the US Federal Reserve has lowered interest rates by 0.25 percentage points, bringing the midpoint down to 3.6%.

The US Federal Reserve has cut interest rates by 25 basis points, with the so-called “dot plots,” revealing that six policymakers wanted no cut at this meeting. Following the cut, traders were pricing in a 78% chance the Fed would hold rates steady in January, according to the latest data from LSEG. 

Prior to the Fed decision global stocks were mostly higher, although the split decision appears to have created uncertainty about monetary policy, the projections and the lack of an overly hawkish tone from the statement drew US investors into the equity market with the S&P 500 leading the gains. The tech and communications services sectors were the biggest drags on the broader market with investors awaiting results from Oracle which reported after the bell. 

Silver has hit another all-time peak of almost $62 an ounce with the price having surged more than 110% so far this year. The Australian dollar has climbed to a three-month high, climbing 0.6% to US66.80 cents.