- After a weak start to the week, the Australian share market is set to open higher on Tuesday.
- The ASX 200 is expected to open 9 points or 0.1% higher on Tuesday after closing 0.6% lower at 7,582.5 in the previous session.
- On Wall Street, the Dow Jones rose 0.3%, the S&P 500 climbed 0.25%, but the NASDAQ fell 0.2%.
After a weak start to the week, the Australian share market is set to open higher on Tuesday, tracking strong cues from Wall Street despite a rise in COVID-19 cases in major cities.
The ASX 200 is expected to open 9 points or 0.1% higher on Tuesday after closing 0.6% lower at 7,582.5 in the previous session. On Tuesday, 18 companies would be releasing their earnings reports, including BHP, real estate investment trusts Dexus and Charter Hall, Santos, and Breville.
On Wall Street, the Dow Jones rose 0.3%, the S&P 500 climbed 0.25%, but the NASDAQ fell 0.2%. Wall Street rebounded after Monday’s losses and two of the three major stock indices closed higher despite concerns about China's economy, the coronavirus Delta variant and turmoil in Afghanistan. The S&P 500 reported a new record high.
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Meanwhile, analysts awaited Wednesday's release of minutes from the Federal Reserve’s July policy meeting. Investors would look for signals from the minutes about the Fed’s plans to start easing back its monthly debt purchase.
Source: © Stbernardstudio | Megapixl.com
Bond yields and dollar
Demand for US Treasuries and dollar increased as investors searched for lower-risk avenues amid ongoing global uncertainty.
The Treasury yields fell as demand for safe-haven US bonds rose, with benchmark 10-year yields falling four basis points to 1.256%. The yield curve between two- and 10-year notes rose two basis points to 105 basis points.
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The dollar rose 0.1% to 92.623 after falling to a one-week low on Friday.
Crude oil prices fall
Crude oil prices inched lower after reports that OPEC and its allies were of the view that the market may not require more oil compared to what they had planned to release in the next few months. Brent crude finished lower 1.5%, at US$69.51 a barrel after falling to US$68.14. WTI dipped by 1.7%, to US$67.29, after reaching lows of US$65.73.
Gold prices rise
The safe-haven sentiment helped gold prices to rise on Tuesday. Spot gold rose 0.5% to US$1,787 per ounce. US gold futures rose 0.6% to US$1,789.
Source: © Robynmac | Megapixl.com
On Monday, Chinese steel futures fell on slower-than-expected growth in industrial output. Stainless steel futures on the Shanghai bourse fell 1.2% to 18,105 yuan per tonne. Benchmark iron ore futures rose 2.3% to 851 yuan a tonne.
Three-month copper on the London Metal Exchange (LME) fell 1.3% to $9,445.50 a tonne by 1600 GMT.
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