ASX 200 to rise after Wall Street rally; PointsBet, IGO’s earnings ahead

Highlights

  • Australian shares are expected to push higher on Tuesday after US stock indices hit all-time highs overnight.
  • The benchmark index ASX 200 may open the day 17 points or 0.2% higher after closing 0.2% higher at 7,504.5 points.
  • The domestic investors would also closely track earnings of some major firms such as PointsBet Holdings, Harvey Norman and IGO Ltd.

The Australian shares are expected to push higher on Tuesday after US stock indices hit all-time highs overnight, led by rally in tech stocks. The benchmark index ASX 200 may open the day 17 points or 0.2% higher after closing 0.2% higher at 7,504.5 points. The domestic investors would also closely track earnings of some major firms such as PointsBet Holdings, Harvey Norman and IGO Ltd.

On Wall Street, the Dow Jones fell 0.15%, but the S&P 500 climbed 0.45% and the NASDAQ stormed 0.9% higher. US stocks jumped as Federal Reserve seemed in no hurry to step away from its massive stimulus.

The markets were also upbeat after Jackson Hole, Wyoming, speech by Fed Chair Jerome Powell. Tech stocks generally rise from expectations of lower interest rates.

Source: © Robynmac    | Megapixl.com

Bond yields and dollar

US Treasury yields rebounded as the markets awaited the release of this week’s August employment report. There is a possibility that the report may include the announcement of the timing of the Fed's tapering announcement. The 10-year US Treasury yield was around 1.2818%.

What is triggering the market momentum today?

The dollar index inched higher after touching a two-week low.

Crude oil prices rise

Oil prices rose but were off a four-week high after weakening of Hurricane Ida into a Category 1 hurricane within 12 hours of arriving as a Category 4.

While Brent crude rose US$73.41 a barrel, WTI climbed to US$69.21 a barrel.

Energy stocks such as Woodside Petroleum Ltd (ASX: WPL) and Santos Ltd (ASX:STO) could trade higher on Tuesday.

Source: © Stbernardstudio   | Megapixl.com

Gold prices fall

Gold prices fell as the dollar surged from its lows. Investors also awaited the release of a key US jobs data later in the week.

Spot gold fell 0.4% to US$1,808.67 per ounce by 1:33 p.m. EDT (1733 GMT). Gold futures closed 0.4% lower at US$1,812.2.

ASX-listed gold stocks such as Northern Star Resources Ltd (ASX:NST) and Newcrest Mining Ltd (ASX:NCM) could trade lower on Tuesday.

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