ASX 200 to rise; US stocks gain after latest Fed meeting minutes

Image Source: ©Miflippo | Megapixl.com

Highlights

  • The Australian share market is expected to rise on Thursday.

  • According to the latest SPI futures, the ASX 200 is likely to open 11 points or 0.15% higher.

  • On Wall Street, the Dow Jones rose 0.6%, the S&P 500 rose 0.95%, and the NASDAQ ended 1.5% higher.


The Australian share market is expected to rise on Thursday following a positive overnight trade on Wall Street. Global shares rose after minutes from Federal Reserve's early May meeting showed a strong likelihood that the US central bank would approve two more half-percentage-point rate hikes in coming months to combat inflation.

The strong US closing may boost domestic technology stocks and strong crude prices that may lift local energy stocks.

According to the latest SPI futures, the ASX 200 is likely to open 11 points or 0.15% higher. On Wednesday, the benchmark index rose 0.4% to 7,155 points.

Meanwhile, Champion Iron Ltd (ASX:CIA) shares would be closely tracked today as the iron ore miner is slated to release its full-year results.

On Wall Street, the Dow Jones rose 0.6%, the S&P 500 rose 0.95%, and the NASDAQ ended 1.5% higher. New home sales in US fell 16.6% month-on-month in April, the largest decline in nine years, and new orders for US-made capital goods rose less than expected in April.

In Europe, the Stoxx 50 rose 0.8%, the FTSE surged 0.5%, the CAC soared 0.7%, and the DAX ended 0.6% higher.

MSCI's gauge of stocks across the globe gained 0.70% at 4:15 PM EDT (2015 GMT), and Europe's STOXX 600 rose 0.63%.

Emerging market stocks rose 0.19%. MSCI's broadest index of Asia-Pacific shares outside Japan closed 0.25% higher, while Japan's Nikkei lost 0.26%. Australian and Korean shares rose 0.4% and the Taiwan Weighted Index and Hong Kong's Hang Seng advanced 0.8% and 0.2%, respectively.

Bond yields

  • 2-year yield: US 2.49%, Australia 2.35% (US prices as of 4.59 PM in New York)
  • 5-year yield: US 2.72%, Australia 2.93%
  • 10-year yield: US 2.75%, Australia 3.24%, Germany 0.95%

The US dollar index snapped a two-day losing streak to rise 0.393%. The euro was down 0.56% at US$1.0674.

Oil prices rise

Oil prices rose on Wednesday, buoyed by tight supplies and as US refiners drove processing activity to their highest level since before the coronavirus pandemic started.

  • Brent crude futures for July settled up 47 cents at US$114.03 a barrel.
  • WTI crude for July delivery ended up 56 cents to US$110.33 a barrel.

 

Gold prices fall

Gold prices dropped more than 1% on Wednesday and were on track to snap a five-session winning streak, weighed by a rebound in the dollar ahead of the release of the US central bank's minutes from its May meeting.

  • Spot gold fell 0.6% to US$1,853.91 an ounce.

RELATED ARTICLE: Wall Street edges higher after Fed minutes; DKS, JWN, NVDA rally

RELATED ARTICLE: Here’s how commodities performed this May

RELATED ARTICLE: RIO, BHP, STO: ASX50 stocks to watch out for


 


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and