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FTSE 100 called lower, interest rates hiked in Australia

Published 06/06/2023, 07:13
Updated 06/06/2023, 07:10
© Reuters.  FTSE 100 called lower, interest rates hiked in Australia

Proactive Investors - The FTSE 100 is set to open a lower on Tuesday after US markets gave back some of Friday’s strong gains.

Spread betting companies see London’s blue chip index down by around 13 points.

In New York, the Dow Jones Industrial Average fell 199.90 points, or 0.6%, to 33,562.86. The S&P 500 slipped 8.58 points, or 0.2%, at 4,273.79 and the Nasdaq Composite dipped 11.34 points, or 0.1%, at 13,229.43.

In Australia, the Reserve Bank of Australia enacted another unexpected interest rate hike of 25 basis points, bringing the cash rate target to 4.10%. The interest rate paid on exchange settlement balances was also increased by 25bp to 4.00%.

This follows a surprise 25bp hike in May.

RBA Governor Philip Lowe explained that upside risks to the outlook for inflation have increased, noting "very high" services price inflation.

Back in London and the early focus will be a trading update from BAT (LON:BATS).

Read more on Proactive Investors UK

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