ASX 200 to rise; US stocks gain ahead of Fed meet; ANZ earnings today

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Highlights

  • The Australian share market is expected to rebound on Wednesday.

  • According to the latest SPI futures, the ASX 200 is likely to open 36 points or 0.5% higher.

  • On Wall Street, the Dow Jones rose 0.2%, the S&P 500 jumped 0.5%, and the NASDAQ ended 0.2% higher.


The Australian share market is expected to rebound on Wednesday after Wall Street recorded modest advance in the overnight trade, ahead of US Federal Reserve interest rate decision, where markets expect a 50 basis-point hike.

According to the latest SPI futures, the ASX 200 is likely to open 36 points or 0.5% higher. On Tuesday, the benchmark index fell 0.4% to 7,316.2 points.

Meanwhile, Australia and New Zealand Banking Group Ltd (ASX:ANZ) is among a few ASX-listed firms which are slated to announce their half year earnings today.

On Tuesday, the Reserve Bank of Australia (RBA) hiked its key rate by a bigger-than-expected 25 basis points, lifting the Aussie dollar as much as 1.3% and hitting local shares.

On the other hand, investors expect the Fed to hike rates by half a percentage point on Wednesday, and to detail plans to reduce its US$8.9 trillion balance sheet. The US central bank raised its policy interest rate by 25 basis points in March.

The latest data showed US job openings hit a record in March as worker shortages persisted, suggesting employers may need to raise wages, which likely would increase consumer prices.

On Wall Street, the Dow Jones rose 0.2%, the S&P 500 jumped 0.5%, and the NASDAQ ended 0.2% higher.

In Europe, the Stoxx 50 rose 0.8%, the FTSE surged 0.2%, the CAC jumped 0.8%, and the DAX ended 0.7% higher.

Bond yields

  • 2-year yield: US 2.78%, Australia 2.72% (US prices as of 4.20 PM in New York)
  • 5-year yield: US 3.02%, Australia 3.19%
  • 10-year yield: US 2.98%, Australia 3.39%, Germany 0.96%

The dollar index fell 0.106%, while the euro rose 0.17% to US$1.0522. The Japanese yen was little changed at 130.16 per dollar.

Oil prices fall

Oil prices inched lower on concerns about demand due to China's extended COVID-19 lockdowns outweighed support from a possible European oil embargo on Russia over the war in Ukraine.

  • WTI crude ended down US$2.76 at US$102.41 a barrel.
  • Brent declined US$2.61 to settle at US$104.97 a barrel.

Gold prices rise

Gold prices rose, tracking a slight retreat in Treasury yields and the dollar, while investors eyed an aggressive rate hike by the Fed on Wednesday.

  • US gold futures settled up 0.4% at US$1,870.60 per ounce.

Meanwhile, Bitcoin fell 2.56% to US$37,535.85.

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