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US rate cut awaited

Markets are awaiting the outcome of a US Federal Reserve interest rate decision, with US president Donald Trump tweeting “a small rate cut is not enough”.
US rate cut awaited US rate cut awaited US rate cut awaited US rate cut awaited US rate cut awaited

The US Federal Reserve’s FOMC will announce an interest rate decision later today

Staff reporter

Trump also criticised China and said the US had "all the cards" as trade negotiations get underway this week.

Bloomberg noted China's "marginal improvement" in PMI data was no reason to be optimistic about global equities.

US and European market futures were pointing higher but Australasian markets were lower in afternoon trade.

Spot gold had reached a fresh high in Australian dollar terms earlier of A$2,081.87 an ounce.

Gold was close to US$1,429/oz at the time of writing, while base metals bar nickel closed lower on the London Metal Exchange yesterday.

Gold stocks were mainly positive in afternoon Australian trade, led by St Barbara's (ASX: SBM) rise of 3%.

In Toronto, Yamana Gold (TSX: YRI) posted a 4.92% gain yesterday on a day the index's gold stocks closed 0.06% lower.

Yamana had announced strong June quarter results last week plus a previously approved dividend increase of 100% and declared a third quarter dividend.

Elsewhere, copper major Freeport-McMoRan (NYSE: FCX) closed 1.2% lower yesterday while Rio Tinto (LSE: RIO) rose 1% in London.