ASX 200 likely to rise; Wall Street rallies

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Highlights

  • The Australian share market is expected to extend its gains to Thursday.

  • According to the latest SPI futures, the ASX 200 would open 13 points or 0.2% higher.

  • On Wall Street, the Dow Jones rose 2.18%, the S&P 500 gained 3.09%, and the NASDAQ ended 4.41% higher.

The Australian share market is expected to extend its gains to Thursday following a strong night on Wall Street.. The US equities rebounded strongly from a shaky start after the US Federal Reserve Chair Jerome Powell signaled that the pace of rate hikes could be scaled down as early as December.

According to the latest SPI futures, the ASX 200  would open 13 points or 0.2% higher. On Wednesday, the benchmark index ended 0.4% higher at 7,284.2 points.

On Wall Street, the Dow Jones rose 2.18%, the S&P 500 gained 3.09%, and the NASDAQ ended 4.41% higher.

In Europe, the Stoxx 50 rose 0.8%, the FTSE gained 0.8%, the CAC surged 1%, and the DAX ended 0.3% higher.

MSCI's gauge of stocks across the globe gained 2.47%.

Bond yields

US Treasury yields retreated across the board after trading higher for most of the session before Powell struck a more dovish tone than the market expected.

  • Benchmark 10-year notes were down 12.6 basis points to 3.622%, from 3.748% late on Monday.
  • The 30-year bond was last down 4.7 basis points to yield 3.7546%, from 3.802%.
  • The 2-year note was last was down 13.6 basis points to yield 4.337%, from 4.473%.

On the other hand, the US dollar index fell 0.795%, while the euro was up 0.75% to US$1.0404.

Oil prices rise

Oil prices rallied by more than US$2 per barrel on signs of tighter supply, a weaker dollar and optimism over a Chinese demand recovery.

  • WTI crude settled up 3% at US$80.55 per barrel.
  • Brent crude finished at US$85.43, up 2.8% on the day.

Gold prices rise

Gold prices rose as the non-yielding asset showing its biggest monthly gain since July 2020.

  • Spot gold added 1.1% to US$1,768.65 an ounce.
  • The US gold futures rose 1.20% to US$1,769.40 an ounce.


 


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