ASX 200 to rise despite Powell’s tapering remarks

Highlights

  • The Australian shares are expected to start the week on Monday on a positive note amid optimism over robust company earnings.
  • The ASX 200 would open the day 30 points or 0.4% higher after rising slightly to 7,415.5 points on Friday.
  • On Wall Street, the Dow Jones rose 0.2%, the S&P 500 fell 0.1%, and the NASDAQ dropped 0.8%.

The Australian shares are expected to start the week on Monday on a positive note amid optimism over robust company earnings, despite Federal Reserve Chair, Jerome Powell's bond tapering remarks weighing on investors' sentiment.

According to the latest SPI futures, the ASX 200 would open the day 30 points or 0.4% higher after rising slightly to 7,415.5 points on Friday.

On Wall Street, the Dow Jones rose 0.2%, the S&P 500 fell 0.1%, and the NASDAQ dropped 0.8% on Friday. US stocks eased off their peak on Friday, while European equities surged, with the Stoxx Europe 600 index advancing 0.5%. Traders weighed strong corporate earnings against persistent concerns over elevated global inflation.

                   

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China’s CSI 300 index gained 0.6% while Tokyo’s Topix closed flat.

On Friday, Powell said that the US central bank should start dialing back its asset-buying program soon while suggesting that the interest rate shouldn't be increased as of now.

China’s CSI 300 index gained 0.6% while Tokyo’s Topix closed flat.

Source: ©Miflippo  | Megapixl.com

Bond market

  • The 30-year Treasury bond yields was down 2.47% to 2.075.
  • The 10-year bond yields fell 1.91% to 1.643.

US Dollar Futures Index decreased by 0.17% to US$93.602. The dollar index, fell as appetite for riskier assets increased.

Futures & commodities

  • Gold futures were up 0.71% to US$1,794.60 per ounce. A softening US dollar boosted the price of the yellow metal.
  • Silver increased by 0.86% to US$24.378 per ounce.
  • Copper fell 1.24% to US$4.5018.
  • Brent oil futures increased by 1.55% to US$85.92 per barrel. Prices of the oil rose amid tightening US supply.
  • WTI crude was up 2.06% to US$84.20.

Meanwhile, iron ore prices rebounded on Friday with the benchmark iron ore price rising 2.2% to US$119.52 a tonne.

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