ASX 200 to fall ahead of RBA rate decision

ASX looks set to open lower ahead of the RBA meeting where officials are expected to raise rates for the first time since 2010. Wall Street stages late rebound and crude oil rose.

Investors are awaiting the Reserve Bank of Australia’s rate decision. Picture: Paul Miller / AAP Image

Welcome to the Trading Day blog for Monday, May 2. ASX futures point to a weaker start for the local market despite a late rebound on Wall Street.

ASX SPI 200 futures are down 0.3 per cent to 7302 as of 6am AEST ahead of the Reserve Bank of Australia’s interest rate decision at 2.30pm AEST. Most economists expect a 15 basis point increase, the first hike since November, 2010.

In the US, the Dow Jones Industrial Average climbed 0.3 per cent overnight, the S&P 500 rose 0.6 per cent and the tech-heavy Nasdaq added 1.6 per cent. Stocks rebound even as the yield on the US 10-year Treasury hit 3 per cent for the first time in more than three years.

Among commodities, US Nymex crude oil climbed 0.9 per cent to $US105.58 a barrel.