ASX 200 to rise; Dow soars 2%; Tabcorp Holdings in focus

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Highlights

  • The Australian share market is poised to open higher on Tuesday.

  • According to the latest SPI futures, the ASX 200 is expected to open 14 points or 0.2% higher on Tuesday.

  • On Wall Street, the Dow Jones rose 2%, the S&P 500 climbed 1.85%, and the NASDAQ ended 1.6% higher.


The Australian share market is poised to open higher on Tuesday following a robust closing by Wall Street on Monday. Strong commodity prices are likely to boost domestic energy and gold stocks.

According to the latest SPI futures, the ASX 200 is expected to open 14 points or 0.2% higher on Tuesday. On Monday, the benchmark index rose ever so slightly to 7,148.9 points.

Meanwhile, Tabcorp Holdings Ltd (ASX:TAH) shares would be closely tracked today on account of demerger of its lottery and Keno businesses into a separate listed entity – The Lottery Corporation Limited (ASX:TLC). “The Lottery Corporation Limited will be added to the S&P/ASX 200 Index effective prior to the open of trading on May 24, 2022 at a zero price,” the company said on 17 May 2022.

On the other hand, TechnologyOne Ltd (ASX:TNE) is among the ASX-listed companies which are slated to release their half-year results.

On Wall Street, the Dow Jones rose 2%, the S&P 500 climbed 1.85%, and the NASDAQ ended 1.6% higher.

In Europe, the Stoxx 50 rose 1.4%, the FTSE surged 1.7%, the CAC soared 1.2%, the DAX ended 1.4% higher.

The MSCI all-country world index gained 1.54% but is still down about 17% from its record high in January. The major British, French, German and Spanish indices rose more than 1% each.

The World Economic Forum holds its first in-person meeting in two years in Davos, Switzerland over the next four days, with central bankers and the International Monetary Fund taking part in panels on the outlook for economies and inflation.

Bond yields

  • 2-year yield: US 2.62%, Australia 2.47% (US prices as of 4.28 PM in New York)
  • 5-year yield: US 2.88%, Australia 3.01%
  • 10-year yield: US 2.87%, Australia 3.32%, Germany 1.01%

The dollar index fell 0.855%. The index rose about 16% to a two-decade high over the 12 months to mid-May.

Oil prices inch higher

Oil prices were little changed as worries over a possible recession offset an outlook for higher fuel demand with the upcoming US summer driving season and Shanghai's plans to reopen after a two-month coronavirus lockdown.

  • US crude futures settled up 1 cent at US$110.29 a barrel.
  • Brent rose 87 cents to settle at US$113.42.

 

Gold prices rise

Gold prices climbed as weakness in the dollar and economic growth concerns lifted the metal, though non-yielding bullion pared some gains after Treasury yields rose.

  • US gold futures settled up 0.3% at US$1,847.80 an ounce.

Meanwhile, Bitcoin fell 3.55% to US$29,189.85.

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