Live: Economy expected to tread water as rate hikes bite, Wall Street falls, Australian dollar tumbles#Live #Economy #expected #tread #water #rate #hikes #bite #Wall #Street #falls #Australian #dollar #tumbles

Good morning, and welcome to the ABC’s Markets Blog, I’m Sue Lannin.

A rise in oil prices has seen US stocks fall overnight on the first trading day of a holiday shortened week.

The Dow Jones index fell 0.6 per cent after oil prices increased to the highest since November as Saudi Arabia and Russia extended voluntary production cuts.

Bond yields jumped with the yield on the 10 year US Treasury bond rising 0.06 per cent to 4.27 per cent as investors focus on the Federal Reserve’s next move on interest rates.

The Australian share market is expected to open lower this morning.

The Australian dollar fell more than 1 per cent overnight to 63.77 US cents after the RBA kept official interest rates on hold for the third month in a row and as the greenback gained to the highest level since March.

That’s a ten month low.

And investors are awaiting the June quarter GDP figures which will be out at 11:30 AEST. 

They expected to show a further annual economic slow down as interest rate rises work their way through the economy.

Economists are predicting the economy expanded by 0.3 per cent over the June quarter, and by 1.8 per cent over the year.

Over the first few months of the year, the economy grew by 0.2 per cent and by 2.3 per cent on an annual basis.

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