AUS
NZ
UK
CA
USA
IND
Highlights
The Australian share market is expected to open higher on Thursday.
The ASX 200 is likely to open 52 points or 0.8% higher, as per the latest ASX Futures.
The Dow Jones rose 1.4%, the S&P 500 climbed 2.6%, and the NASDAQ ended 4.1% higher.
The Australian share market is expected to open higher on Thursday after Wall Street closed on a strong note in the overnight trade as the US Federal Reserve delivered expected 75 basis point rate hike to control inflation. Additionally, domestic miners are expected to record gains during the day on higher commodity prices.
The ASX 200 is likely to open 52 points or 0.8% higher, as per the latest ASX Futures. On Wednesday, the benchmark index surged 0.2% to 6,823.2 points.
On Wall Street, the Dow Jones rose 1.4%, the S&P 500 climbed 2.6%, and the NASDAQ ended 4.1% higher.
In Europe, the Stoxx 50 rose 0.9%, the FTSE gained 0.6%, the DAX climbed 0.5%, and the CAC ended 0.7% higher.
US Fed raises rates
The US Fed hiked rate by 0.75% for the second straight month, taking the benchmark overnight borrowing interest rate to a range of 2.25% to 2.5%. It was the steepest hike since the inflation-fighting era of Fed Governor Paul Volcker in the early 1980s. However, the equities jumped as the Fed hinted that it could now slow down the pace of its rate hike.
Bond yields
Ten-year US Treasury bond yields declined sharply after Fed announced the rate hike. The yield on the US 10-year notes last fell five basis points to 2.76%.
The US dollar index fell 0.728%, while the euro was up 0.92% to US$1.0207.
Oil prices rise
Oil prices rose on Wednesday due to cuts in Russia’s gas flows to Europe and reports of lower US inventories.
- WTI ended 2.4% higher at US$97.26 per barrel.
- Brent crude settled at US$106.62, up 2.13%.
Gold prices inch higher
Gold prices rise on news that Fed could slow its future rate hikes.
- Spot gold added 1.1% to US$1,735.30 an ounce.
Meanwhile, on Wednesday, Dalian iron ore touched a new two-week high after data revealed that Chinese industrial firms’ profits rebounded in June. However, challenges in China’s property sector kept the steelmaking ingredient's gains in Singapore muted.
