ASX 200 likely to gain as US markets cheer inflation slowdown

The Australian share market is likely to begin on a higher note on Thursday (August 11), as inflation slowed quite expected within the US, easing pressure on the Federal Reserve to lift rates aggressively.

As per the latest SPI Futures, the ASX 200 would open 58 points or 0.84% higher. On Wednesday (10 August), the benchmark index ASX 200 closed 0.53% lower at 6,992.70 points.

Core consumer costs accrued by 0.3%, the weakest monthly growth in 10 months.

According to Chicago Fed President Charles Evans, the report was the primary “positive” inflation report since the start of hiking by central bank in March.

On Thursday (11 August), ASX-listed firms such as ResMed Inc, AMP Limited, Mirvac Group and QBE Insurance Group are scheduled to release their financial results.

Global equities

In the US, the S&P 500 jumped 2.13%, the Dow Jones gained 1.63% and the NASDAQ ended 2.89% higher on Wednesday (August 10).

In Europe, the Stoxx 50 went up 0.91%, the FTSE gained 0.25%, the CAC increased 0.52%, and the DAX ended 1.23% higher.

Bond yields

Benchmark 10-year note yields decreased to 2.79%.

On the other hand, the dollar index was down 1.08% at 105.23 at 5.18 PM Eastern time.

Oil prices gain

• Brent crude closed at US$97.40 per barrel, up 1.1%

Gold prices fall

Gold prices fell on weekday as hawkish remarks from US Fed officers dampened hopes of a let-up in aggressive policy modification after the inflation data. Gold had charged higher on top of the US$1,800 level before losing ground.

Spot gold fell 0.11% to US$1,792.20 per ounce by 5.31 PM ET.

Iron ore dips

Iron ore closed at US$111.50/T, down 1.33% on Wednesday.