ASX 200 to open higher, all eyes on RBA meet this week

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ASX 200 to open higher, all eyes on RBA meet this week

 ASX 200 to open higher, all eyes on RBA meet this week
Image source: © Rawpixelimages | Megapixl.com

Highlights

  • The Australian share market is expected to begin the week on an upbeat note.

  • As per the latest ASX Futures, the benchmark ASX 200 index may open on Monday 96 points or 1.5% higher.

  • On Wall Street, the Dow Jones rose 1.05%, the S&P 500 surged 1.05%, and the NASDAQ ended 0.9% higher.

The ASX 200 is likely to commence the week on an upbeat note after Wall Street closed on a strong note last Friday.

As per the latest ASX Futures, the benchmark ASX 200 index may open on Monday 96 points or 1.5% higher. Last Friday, the index declined 0.4% to 6,539.9 points.

Meanwhile, all eyes would be set on the Reserve Bank of Australia’s (RBA) 5 July monetary policy meeting. According to economists, the RBA is expected to lift official cash rate from to 1.35% from 0.85% as it continues with its policy tightening approach.

In US, the Dow Jones rose 1.05%, the S&P 500 surged 1.05%, and the NASDAQ ended 0.9% higher.

In Europe, the Stoxx 50 fell 0.2%, the FTSE was flat, the DAX surged 0.2%, and the CAC ended 0.1% higher. The manufacturing activity in euro zone saw its first decline in June since the initial wave of COVID-19 in 2020.

MSCI's world stocks index rose 0.4%.

Bond yields

The bond yields fell as investors anticipated that the US Federal Reserve would push the inflation down to near its target rate.

The yield on 10-year note closed down 8.5 basis points at 2.889%. The two-year yield fell 8.8 basis points to 2.839%.

The US dollar index, on Friday rose 0.36% against a basket of currencies to 105.12.

Oil prices rise

Oil prices rose amid concerns of likely shutdowns in Norway and supply outages in Libya.

  • Brent crude futures ended the session on Friday at US$111.63 a barrel, up 2.4%.
  • WTI crude closed at US$108.43 a barrel, advancing 2.5%.

Gold prices fall

Gold prices declined as investors’ appetite for yellow metal decreased amid rising rates.

  • US gold futures ended 0.3% lower at US$1,801.5.

Three-month copper on the London Metal Exchange fell 2.6% to US$8,047 a tonne amid concerns about a possible recession hitting metal demand.

Similarly, iron ore's most-traded September contract on China's Dalian Commodity Exchange closed 6.9% lower.

Meanwhile, bitcoin witnessed its biggest fall in a quarter over the three months ended June. It last fell 2.16% to US$19,494.40.

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