- The Australian share market is expected to rebound on Tuesday.
- According to the latest SPI futures, the ASX 200 is expected to open the day 50 points or 0.7% higher.
- The dollar index rose 0.07%, with the euro down 0.32% to US$1.1281.
The Australian share market is expected to rebound on Tuesday, as investors analyse the shock effect of Omicron coronavirus variant. A rebound in iron ore prices is likely to support domestic mining stocks. According to the latest SPI futures, the ASX 200 is expected to open the day 50 points or 0.7% higher. The benchmark fell 0.54% on Monday.
The global stocks surged, oil prices bounded and bonds lost ground as investors and traders clung on to hopes that the newly discovered vaccine-resistant variant would have lesser impact than earlier feared. It happened after a top South African infectious disease expert said that existing COVID-19 vaccines are probably effective at preventing severe disease and hospitalisation.
ASX rises; AMP climbs 6.5pc on demerger plans
On Wall Street (near 4:30 PM), the Dow Jones was up 0.7%%, S&P 500 surged 1.3% and the tech-heavy NASDAQ was up 1.9%
The pan-European STOXX 600 ended 0.7% up. MSCI's gauge of stocks across the globe advanced 0.67%. MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.4%. Japan's blue-chip Nikkei fell 1.6%.
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- 2-year yield: US 0.51%, Australia 0.60%
- 5-year yield: US 1.18%, Australia 1.32%
- 10-year yield: US 1.53%, Australia 1.74%, Germany -0.32%
The dollar index rose 0.07%, with the euro down 0.32% to US$1.1281.
Oil prices rise
Traders bought oil on the hope that Friday’s selloff was an overreaction to Omicron. On Friday, oil prices had fallen more than 10% in their biggest one-day drop since April 2020.
Speculations that oil producing group OPEC and its allies, known as OPEC+, may pause an output increase in response to the spread of Omicron aided the oil price rebound.
Brent futures settled at US$73.44 per barrel, up 1%.
WTI crude futures settled at US$69.95 per barrel, up 2.6%.
Gold prices fall
Gold prices fell as improving investor sentiment put pressure on the safe-haven asset.
US gold futures settled 0.2% lower at US$1,782.30.
Iron ore rises
Steel futures in China traded in a tight range on Monday, weighed by demand fears due to the new Omicron coronavirus variant. Benchmark iron ore futures rose 4.8% to 615 yuan a tonne, giving up some of its 6.1% surge earlier.
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