- The ASX 200 is expected to open higher on Thursday despite fears over the Delta coronavirus variant and inflation after Wall Street continued its rebound in the overnight trade.
- The ASX 200 may open the day 70 points or 0.1% higher.
- The yield on 10-year US Treasury notes was up 8.8 basis points to 1.297%.
The Australian stock market is expected to open higher on Thursday despite fears over the Delta coronavirus variant and inflation after Wall Street continued its rebound as investors shifted their focus to corporate earnings season.
The ASX 200 may open the day 70 points or 0.1% higher. On Wednesday, the benchmark index closed 0.78% higher at 7,308.70.
While the Dow Jones Industrial Average rose 0.8%, the NASDAQ Composite advanced 0.9%. The S&P 500 surged 0.8%.
Source: © Joingate | Megapixl.com
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The upbeat earnings from firms such as Coca-Cola, and Chipotle Mexican Grill also triggered gains on Wall Street.
Analysts said that Monday’s growth scare, which led to the markets falling sharply, was an over-reaction. The economy was on a recovery path, and investors should stay long on the market, they added.
Tech shares to surge
The Australian tech shares are expected to trade higher on Thursday after the tech-heavy NASDAQ Composite closed higher overnight. Domestic tech shares such as Xero (ASX:XRO), Afterpay (ASX:APT), and BrainChip Holdings (ASX:BRN) could trade in the green today.
Bonds and dollar
The bond yields continued to rebound for second day in a row. The yield on 10-year US Treasury notes was up 8.8 basis points to 1.297%.
The US dollar retreated from more than three-month highs. The dollar index was little changed to slightly lower at 92.911.
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Crude oil prices jump
Crude oil prices surged over 4% Wednesday, as improved risk appetite helped. The recovery happened despite data showing an unexpected rise in US oil inventories.
Brent crude futures advanced 4.2%, to close at US$72.23 a barrel. US West Texas Intermediate (WTI) crude futures rose 4.6%, to settle at US$70.30 a barrel.
Gold prices fall
With investors focus against shifting to equities and bonds, the gold prices fell for a second straight session to their lowest level in more than a week in the overnight trade.
Spot gold fell 0.4% to US$1,803.11 per ounce by 12:34 p.m. EDT. US gold futures closed 0.4% down at US$1,803.40.
Iron ore prices fall
The most-traded iron ore futures on the Dalian Commodity Exchange, for September delivery, fell 3.9% to 1,174 yuan (US$181.33) per tonne at close.
The Australian Bureau of Statistics (ABS) would release data on international merchandise trade, labour force and weekly payroll jobs and wages on Thursday.
A European Central Bank meeting is scheduled today.