ASX 200 likely to close week on a positive note

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Highlights

  • The Australian share market is expected to close the week marginally higher.
  • According to the latest SPI futures, the ASX 200 would open 14 points or 0.2% higher on Friday.
  • On Thursday, the benchmark ASX 200 index ended 0.15% higher at 7,241.8 points.

The Australian share market is expected to close the week marginally higher, as investors remain upbeat on the US Federal Reserve's lesser hawkish stance on rising interest rates. On the other hand, the miners are likely to add to gains on higher iron ore prices.

According to the latest SPI futures, the ASX 200  would open 14 points or 0.2% higher on Friday. On Thursday, the benchmark ASX 200 index ended 0.15% higher at 7,241.8 points.

Wall Street was closed for Thanksgiving. Trading will resume on Friday in New York, though markets will close early at 1 PM local time. In Europe, the Stoxx 50 rose 0.4%, the FTSE gained 0.02%, the CAC surged 0.4%, and the DAX ended 0.8% higher.

Bond yields

Recession fears remain intense. Wednesday's post-Fed US bond market moves had seen yields on 10-year notes fall to a huge 79-basis-point deficit relative to two-year yields.

The euro rose as high as US$1.0447, edging it closer to its recent four-month top of US$1.0481, while the US dollar weakened 0.6% against the Japanese yen to 138.70 yen and past US$1.20 against sterling.

Oil prices fall

Oil prices edged lower on Thursday, hovering around two-month lows as the level of a proposed G7 cap on the price of Russian oil raised doubts about how much it would limit supply.

  • Brent crude futures fell 0.3% to US$85.13.
  • WTI crude oil futures eased 0.2% to US$77.74 per barrel.

Gold prices inch higher

Gold prices rose to a near one-week high on Thursday on a weaker dollar, after minutes from the US Federal Reserve's November meeting signalled it may soon slow the pace of interest rate hikes.

  • Spot gold rose 0.3% to US$1,754.13 per ounce by 2:05 PM ET (1905 GMT).
  • US gold futures were up 0.5% to US$1,754.30.

 

Meanwhile, Chinese property stocks rose nearly 7% higher, after banks there pledged at least US$38 billion in fresh credit lines to cash-strapped developers, although the Shanghai Composite Index lost 0.25% as the country's COVID cases continued to surge.



 


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