- The Australian shares are expected to open on a higher note on Friday, tracking strong cues from US peers.
- The benchmark ASX 200 index may open the day 1% higher.
- The Dow Jones rose 0.45%, the S&P 500 climbed 0.4%, and the NASDAQ edged 0.1% higher.
The Australian shares are expected to open on a higher note on Friday, tracking strong cues from US peers, while an extended lockdown in New South Wales continued to exert pressure on the market.
The benchmark ASX 200 index may open the day 0.1% higher. On Thursday, the benchmark closed 0.5% higher at 7,417.4 points.
On Wall Street, US shares scaled record highs overnight, buoyed by robust company earnings and encouraging economic data. The Dow Jones rose 0.45%, the S&P 500 climbed 0.4%, and the NASDAQ edged 0.1% higher.
Source: © Joingate | Megapixl.com
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The second-quarter gross domestic product (GDP) data showed that the US economy grew by 6.5% on an annualised basis, up slightly from last year. Meanwhile, jobless claims stood at 400,000, resuming their downward trajectory. Even as the two figures were below market expectations, investors largely shunned the disappointment.
On Wednesday, US Federal Reserve had said that it was not the right time to start tapering economic stimulus, pinning the dollar at a one-month low.
Meanwhile, stock markets also traded higher in other parts of the globe on strong earnings in Europe. The concerns over Chinese sell-off were also eased after the country’s regulators called banks overnight to smoothen concerns about a widening regulatory crackdown.
Bond yields and dollar
US Treasury yields edged higher after a soft 7-year note auction added to the positive risk tone. The 10-year Treasury yield trade up a little at 1.267% in the afternoon trade.
The dollar declined to a one-month low, a day after US Fed said that the jobs market still had to recover more before going ahead with easing monetary stimulus. The dollar index was down 0.383% at 91.905, its lowest since June 29.
Crude oil prices rise
Crude oil prices rose on Thursday as supplies in the US further tightened, and the US dollar softened. While the US crude rose 1.64% to US$73.58 per barrel, Brent was at US$76.06, up 1.77% on the day.
Source: © Outline205 | Megapixl.com
Gold prices inch higher
Gold prices rose by 1% after investors cheered that Fed was more focused on economic growth than controlling price pressures. Such an approach bodes well for the yellow metal, considered a hedge against inflation.
Spot gold added 1.2% to US$1,827.79 an ounce. US gold futures rose 1.58% to $1,828.10 an ounce.
Iron ore prices fell, weighed by prospects of a slowdown in demand from China. As a result, the most-traded iron ore for September delivery on China's Dalian Commodity Exchange closed 1.6% lower at 1,114.50 yuan (US$172.37).
On the London Metal Exchange (LME), the benchmark copper traded up 1.3% at US$9,816 a tonne at 1603 GMT.
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