The Australian share market is likely to begin the week on a strong note.
According to the latest SPI futures, the ASX 200 is expected to open 54 points or 0.8% higher on Monday.
On Wall Street, the Dow Jones rose 1.5%, the S&P 500 surged 2.4%, and the NASDAQ ended 3.8% higher.
The Australian share market is likely to begin the week on a strong note following robust performance by Wall Street on Friday. The higher oil and iron ore prices may aid local commodity stocks, with surging inflation and accompanied rate hikes dominating investor sentiments.
According to the latest SPI futures, the ASX 200 is expected to open 54 points or 0.8% higher on Monday. The benchmark index surged 1.9% higher to 7,075.1 points.
Meanwhile, Goodman Group (ASX:GMG) is slated to release its third quarter update today.
On the other hand, major events this week include the latest RBA meeting minutes on Tuesday, wage price data on Wednesday and April’s labour force report on Thursday.
On Wall Street, the Dow Jones rose 1.5%, the S&P 500 surged 2.4%, and the NASDAQ ended 3.8% higher. Despite Friday's gains, the S&P 500 and the NASDAQ posted their sixth consecutive weekly loss, and the Dow notched its seventh consecutive weekly dip.
In Europe, the Stoxx 50 rose 2.5%, the FTSE surged 2.6%, the CAC climbed 2.5%, and the DAX ended 2.1% higher.
Emerging market stocks rose 1.83%. MSCI's broadest index of Asia-Pacific shares outside Japan 2.01% from Thursday's 22-month closing low. Japan's Nikkei rose 2.64%.
- 2-year yield: US 2.58%, Australia 2.52%
- 5-year yield: US 2.87%, Australia 3.03%
- 10-year yield: US 2.92%, Australia 3.39%, Germany 0.94%
The dollar was lower on Friday but remained on track for a weekly gain. The dollar index fell 0.2%, while the euro was up 0.21% to US$1.0401.
The Japanese yen weakened 0.77% versus the greenback at 129.32 per dollar, while sterling last traded at US$1.2232, up 0.27% on the day.
Oil prices rise
Oil prices rose 4% as US gasoline prices jumped to a record high and China looked ready to ease pandemic restrictions.
- Brent futures rose US$4.10, or 3.8%, to settle at US$111.55 a barrel.
- WTI crude rose US$4.36, or 4.1%, to settle at US$110.49.
Gold prices inch higher
Gold fell more than 1% on Friday and is set for its fourth straight weekly decline, as the dollar's strength sapped appetite for bullion.
- Spot gold fell 0.8% to US$1,807.79 an ounce.
- Gold futures declined 0.59% to US$1,807.40 an ounce.
Cryptocurrencies steadied on Friday, with bitcoin recovering from a 16-month low after a volatile week dominated by the collapse in value of TerraUSD, a so-called stablecoin.
Bitcoin rose 3.5% to US$29,884, rebounding from a December 2020 low of US$25,400 hit on Thursday. Bitcoin remains far below week-earlier levels of around $40,000 and is on track for a record seventh consecutive weekly loss.
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