ASX 200 to rise; Wall Street jumps on upbeat tech earnings

Highlights

• The Australian share market is expected to end the week on a positive note.

• According to the latest SPI futures, the ASX 200 is likely to open 45 points or 0.6% higher.

• The Dow Jones rose 1.85%, the S&P 500 surged 2.5%, and the NASDAQ ended 3.1% higher.

The Australian share market is expected to end the week on a positive note after a strong overnight closing on Wall Street. The upbeat earnings by US tech firms eased worries about economic slowdown and oil prices soared on concerns of tightening global supply.

According to the latest SPI futures, the ASX 200 is likely to open 45 points or 0.6% higher. The benchmark index rose 1.3% to 7,356.9 points.

In the US, technology stocks gained on strong earnings. Shares of Facebook parent Meta Platforms Inc rose after the company reported a larger-than-expected profit on Wednesday. The Dow Jones rose 1.85%, the S&P 500 surged 2.5%, and the NASDAQ ended 3.1% higher.

A separate report from the Labor Department on Thursday showed initial claims for state unemployment benefits fell 5,000 to a seasonally adjusted 180,000 for the week ended 23 April, suggesting that the US economy is putting the Omicron wave of the coronavirus behind it.

In Europe, the Stoxx 50 rose 1.1%, the FTSE surged 1.1%, the CAC gained 1%, and the DAX ended 1.4% higher.

The MSCI world equity index rose 12.07 points, or 1.85%, to 665.97. The MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.03%.

Bond yields

• 2-year yield: US 2.62%, Australia 2.36% (US prices as of 4.59 PM in New York)
• 5-year yield: US 2.84%, Australia 2.85%
• 10-year yield: US 2.82%, Australia 3.08%, Germany 0.90%

The euro hit a five-year low against the dollar of US$1.04695 before paring losses. It was still on track for its worst monthly performance since January 2015. The weaker yen and euro pushed the dollar index to 103.930, its highest level since December 2002.

Oil prices inch higher

Oil prices rose on the increased likelihood that Germany will join other European Union member states in an embargo on Russian oil, which could further tighten supplies in the already-stressed global crude market.

• Brent crude futures rose US$2.27 to settle at US$107.59 a barrel.

• WTI crude rose US$3.34 to US$105.36.

Gold prices rise

Gold prices rose from a ten-week low touched earlier in the session under pressure from the stronger U.S. dollar.

• US gold futures settled up 0.1% at US$1,891.30.

Meanwhile, Malaysian palm oil futures fell 1% on Thursday after skyrocketing in the previous session, as Indonesia banned exports of crude and refined grades of the edible oil, although the top producer said the ban would be temporary.

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