Upbeat US inflation data likely to boost ASX 200 at open - Kalkine Media

December 14, 2022 09:01 AM AEDT | By Ashish
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Highlights

  • The Australian share market is poised to rise at open on Wednesday.

  • According to the latest SPI futures, the ASX 200 would open 14 points or 0.2% higher.

  • On Wall Street, the Dow Jones rose 0.3%, the S&P 500 gained 0.7%, and the NASDAQ ended 1% higher.

The Australian share market is poised to rise at open on Wednesday following a positive night on Wall Street after a smaller-than-expected rise in US inflation firmed hopes of a potential slowdown in the Federal Reserve's interest rate hike pace. The US consumer price index increased 0.1% last month after advancing 0.4% in October.

According to the latest SPI futures, the ASX 200 would open 14 points or 0.2% higher. On Tuesday, the benchmark index ended 0.3% higher at 7,203.3 points.

Meanwhile, Westpac Banking Corp (ASX:WBC), Magellan Financial Group Ltd (ASX:MFG), and Orica Ltd (ASX:ORI) are scheduled to hold their annual general meetings (AGMs) today.

On Wall Street, the Dow Jones rose 0.3%, the S&P 500 gained 0.7%, and the NASDAQ ended 1% higher. The tech heavy NASDAQ was nearly 4% higher at one stage after a better-than-expected inflation data in the US.

In Europe, the Stoxx 50 rose 1.7%, the FTSE gained 0.8%, the CAC rose 1.4%, and the DAX ended 1.3% higher.

Bond yields

US Treasury yields dropped on the November inflation data.

  • The yield on 10-year Treasury notes was down 9.7 basis points to 3.516%.
  • The 30-year yields fell 5.1 basis points to 3.525%.
  • The two-year yields dropped 17 basis points to 4.233%.

The dollar also reacted, dropping against the yen and euro.

Oil prices rise

Oil rallied for a second day, having jumped 2.5% on Monday. The market was buoyed by concern about supply disruptions, including the ongoing shutdown of the Canada-to-US Keystone crude pipeline following a massive leak.

  • WTI crude rose 3.51% to US$75.74 per barrel.
  • Brent crude stood at US$80.87, up 3.69% on the day.

Gold prices edge higher

Gold, which is sensitive to shifts in US inflation, also gained, with spot gold up 1.6% to US$1,809.61 an ounce and US gold futures up 1.77% to US$1,813.90 an ounce.


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