ASX 200 to rise after Wall Street rallies; oil prices soar

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ASX 200 to rise after Wall Street rallies; oil prices soar

 ASX 200 to rise after Wall Street rallies; oil prices soar
Image source: © Robynmac | Megapixl.com

Highlights

  • The Australian share market is expected to rise on Wednesday.

  • According to the latest SPI futures, the ASX 200 is likely to open 42 points or 0.65% higher.

  • On Wall Street, the Dow Jones rose 2.15% and the S&P 500 surged 2.45%, and the NASDAQ charged 2.5% higher.

The Australian share market is expected to rise on Wednesday following a strong night of trade on Wall Street. The local energy stocks are expected to benefit from rising oil prices.

According to the latest SPI futures, the ASX 200 is likely to open 42 points or 0.65% higher. On Tuesday, the benchmark index rose 1.4% to 6,523.8 points.

On Wall Street, the Dow Jones rose 2.15% and the S&P 500 surged 2.45%, and the NASDAQ charged 2.5% higher.

Stocks on global indices rose sharply on Tuesday, with major US stock indices each ending up more than 2% following a recent selloff, while the Japanese yen fell against the US dollar to its lowest level since October 1998.

Expectations of interest rate hikes from major central banks and worries about a global recession have kept investors on edge. Central banks are expected to tighten policy to combat high inflation.

All eyes are now on Fed Chair Jerome Powell's testimony to the Senate Banking Committee on Wednesday for clues on rates.

In the foreign exchange market, the Japanese yen plunged against the US dollar to 136.330 per dollar.

In Europe, the Stoxx 50 rose 0.7%, the FTSE surged 0.4%, the CAC soared 0.8%, and the DAX ended 0.2% higher.

Bond yields

  • 10-year yield: US 3.28%, Australia 4.06%, Germany 1.76% (US prices as of 4.41 PM in New York)

Oil prices inch higher

Oil prices edged up on Tuesday on high summer fuel demand while supplies remained tight because of sanctions on Russian oil after its invasion of Ukraine.

  • Brent crude futures rose 52 cents, or 0.5%, to settle at US$114.65 a barrel.
  • WTI crude contract for July expired on Tuesday, closing at US$110.65, with a gain of US$1.09, or 1%.

Gold prices fall

Gold prices were hemmed into a range on Tuesday as rising US Treasury yields and aggressive rate hike bets dimmed bullion's appeal despite a pullback in the dollar.

  • Spot gold prices fell 0.3% to US$1,832.27 an ounce.

Meanwhile, Singapore iron ore futures rebounded on Tuesday after a run of sell-offs triggered by pessimism over demand from top steel producer China, but prices in Dalian remained under pressure. Dalian coking coal slumped 3.2% and coke dipped 1.7%.

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