- ASX 200 Index recovers back into positive territory from a low of 6,165.80.
- Most sectors stabilizing as the goes by in a last-minute dash ahead of the Federal Reserve.
Australian shares had a smaller-than-expected drop in early trade, after a recent surge of enthusiasm hit the brakes overnight.
The ASX 200 Index has now rallied into positive territory from a low of 6,165.80 to a high of 6,167.90 to trade 0.31% higher at the time of writing.
To start the day, following Wall Streets mixed lead, almost every sector was in the red, with energy and financials being the weakest links.
- Wall Street Close: Time for reflection ahead of the Fed – FXStreet
Virgin Money UK (-6.4pc), GPT Group (-4.8pc) and Santos (-2.8pc) were the worst-performing stocks along with the major, particularly Commonwealth Bank (-1.2pc), Westpac (-2.1pc), NAB (-2pc) and ANZ (-2.5pc).
However, most sectors are stabilizing as the goes by in a last-minute dash ahead of the Federal Reserve.
FOMC’s June monetary policy meeting eyed
Analysts at Westpac have stated that the major event of the day will be the FOMC’s June monetary policy meeting.
Having had great success buoying sentiment thus far, the Fed will keep rates on hold (4am Thu Syd). Following the policy announcement, Chair Powell will deliver the post-meeting press conference (4:30am). There will be considerable interest in the “dots” of FOMC members’ interest rate projections, which have not been published since December 2019 and on any discussion of measures such as yield curve control.
ASX 200 Index levels
The bulls have broken the 61.8% Fibonacci retracement of 6124. However, bears will be looking to the US markets for a correction if the Fed fails to appease the bulls.
5502 comes as a compelling level to the downside, around a 38.2% Fibonacci retracement. A continuation, however, will open prospects for a recovery to the 6300s.
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