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Highlights
The Australian share market is expected to rebound on Wednesday.
According to the latest SPI futures, the ASX 200 is likely to open 54 points or 0.75% higher.
On Wall Street, the Dow Jones rose 0.8%, the S&P 500 surged 0.95%, and the NASDAQ ended 0.95% higher.
The Australian share market is expected to rebound on Wednesday after a strong overnight closing on Wall Street. The energy and gold stocks are likely to benefit from firmer commodity prices, a day after Reserve Bank of Australia (RBA) surprised markets with a 50-basis points interest rate hike - the most in 22 years.
According to the latest SPI futures, the ASX 200 is likely to open 54 points or 0.75% higher. On Tuesday, the benchmark index fell 1.5% to 7,095.7 points.
On Wall Street, the Dow Jones rose 0.8%, the S&P 500 surged 0.95%, and the NASDAQ ended 0.95% higher.
In Europe, the Stoxx 50 fell 0.8%, the FTSE declined 0.1%, the CAC dipped 0.7%, and the DAX slipped 0.7%.
The MSCI's benchmark for global stocks gained 0.40%,
Later this week, the European Central Bank is expected to start a tightening cycle.
Bond yields
- 10-year yield: US 2.98%, Australia 3.55%, Germany 1.29% (US prices as of 4.31 PM in New York)
In foreign exchange markets, the dollar index fell 0.146%, while the euro was up 0.09% to US$1.0704 on expectations of a hawkish ECB tilt.
The Australian dollar gained as much as 0.76% just after the supersized RBA rate hike, but quickly shed gains to trade flat on the day.
Oil prices rise
Oil prices gained about 1%, with US crude closing at a 13-week high, on supply concerns, including the lack of a nuclear deal with Iran and the prospect of higher demand after China relaxed lockdowns imposed to control the coronavirus pandemic.
- US crude futures rose 91 cents to settle at US$119.41 a barrel.
- Brent crude settled up US$1.06 at US$120.57.
Gold price inches higher
Gold rose as the dollar gave up some gains, while investors positioned for US inflation readings later this week for cues on the Fed's interest rate hike trajectory.
- US gold futures settled 0.5% higher at US$1,852.10 an ounce.
Meanwhile, benchmark iron ore futures in Asia slipped on Tuesday as traders fretted about high prices squeezing steel mill margins after Chinese demand for the steelmaking ingredient spurred an earlier rally.
The most-traded September iron ore contract on China's Dalian Commodity Exchange ended daytime trading 0.6% lower at 928.50 yuan (US$139.32) a tonne, after hitting a 10-month high on Monday.
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