- Australian shares are set to rise on Thursday following strong overnight trade on Wall Street.
- The ASX 200 is expected to open 16 points or 0.2% higher, according to the latest ASX futures.
- On Wall Street, the Dow Jones rose 1%, the S&P 500 climbed 0.95%, and the NASDAQ jumped 1%.
Australian shares are set to rise on Thursday following strong overnight trade on Wall Street. The domestic shares are likely to surge as tech stocks take cues from US peers, which ended sharply higher after the Federal Reserve signalled to taper its stimulus soon. Even easing concerns around China’s Evergrande helped the sentiment.
Cochlear, NRW Holdings and Genesis Energy are a few stocks going ex-dividend on Thursday.
The ASX 200 is expected to open 16 points or 0.2% higher, according to the latest ASX futures. On the other hand, the Dow Jones rose 1%, the S&P 500 climbed 0.95%, and the NASDAQ jumped 1%.
ASX gains post Fed flags taper
In a post-statement press conference, Fed chair Jerome Powell told reporters that a gradual tapering could start as early as November and end by mid-2022.
Bond prices and dollar
US Treasury prices surged after Fed announced that it would bring down monthly bond purchases soon. It also signalled that higher interest rates might be a reality more quickly than expected. Benchmark US 10-year notes last rose 6/32 in price to yield 1.3057%.
The US dollar remained choppy after the latest policy announcement by the Fed. The dollar index rose 0.238%.
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Crude oil prices rise
Crude oil prices inched higher following a greater-than-expected drawdown of US supplies. WTI ended up 2.5% at US$72.23 per barrel. Brent crude closed at US$76.19, up 2.5% on the day.
Gold prices fall
Gold prices fell despite the Fed holding interest rates steady. Spot gold fell 0.4% to US$1,766.76 an ounce.
Iron ore prices rebound
Iron ore futures in Asia rebounded on Wednesday. However, concerns remained on whether gains could be sustained on the back of the collapse in China's demand and improving supply prospects. January iron ore on China's Dalian Commodity Exchange ended 3.7% higher at 668.50 yuan (US$103.41) a tonne.
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