Advanced Search

Share Coverage



Category: Stockmarket / Markets / Currency / Futures / Money and Monetary Policy

Morning markets: Wall St bounces back, ASX to follow

Tuesday, 13 Sep 2016 06:31:29 | Alicia Barry

US investors dipped their toes back in the market, pushing it up around 1.5 per cent. (Getty/AFP: Spencer Platt)

Wall Street has recovered from its biggest sell one day sell-off since June, with a rally as traders trimmed their expectations for a rate rise next week.

Markets at 8:15am (AEST):

  • ASX SPI 200 futures +1.5pc to 5,280
  • AUD: 75.64 US cents, 67.3 euro cents, 77.07 Japanese yen, 56.7 British pence, $NZ1.029
  • US: Dow Jones +1.3pc to 18,325, S&P 500 +1.5pc to 2,159, Nasdaq +1.7pc to 5,212
  • Europe: EuroStoxx -1.3pc to 3,013, FTSE 100 -1.1pc to 6,701, DAX -1.3pc to 10,432
  • Commodities: Iron ore (no trade) $US57.50/tonne, Brent crude +0.3pc to $US48.16/barrel, spot gold flat at $1,328/ounce

It was worries about a September rate rise that sparked the panic selling on Friday, and which flowed through to Australian and Asian markets yesterday.

Last night's reversal in mood came after comments from US Federal Reserve official Lael Brainard, who urged caution about removing monetary stimulus too quickly.

Dr Brainard has been a big opponent of rate increases for much of the past year and was the last scheduled Fed speaker before the blackout period ahead of next week's two-day policy meeting.

The US dollar fell for the first time in four sessions as the odds for a rate hike slid to 20 per cent, down from around 30 per cent yesterday.

ANZ's analysts noted that this did not trigger a great move in long-term US bonds, indicating that recent monetary policy jitters on markets may extend beyond the Fed.

"Markets have been abuzz with talk of central banks stepping away from the easing table in Europe, the UK, and Japan," they observed.

"This suggests that perhaps the recent sell-off in long ends was more related to the prospect of no further action from the ECB, BoJ, and BoE.

"On this note, the BoJ meeting on 21 September looks like the biggest near-term risk event for markets."

The next Federal Reserve decision will also come out on September 21, but early in the morning of September 22 Australian time.

That has seen the Australian dollar inch higher to 75.60 US cents.

On Wall Street, the S&P 500 index jumped the most in two months after sinking 2.5 per cent on Friday.

Earlier, European shares fell by the most in three months following Wall Street's rout on Friday.

However, reacting to Wall Street's rebound, Australian share futures have jumped.

In Asia, traders will likely be watching Samsung shares after they tumbled as much as 6 per cent yesterday on warnings the Note 7 mobile device might catch fire.

On commodity markets, West Texas crude oil rebounded back above $US46 a barrel.

Gold futures fell for a fourth straight session, while nickel led a selloff in industrial metals on lingering concern the Fed is closer to raising rates.

Today's agenda: 

Australia: 
  • RBA assistant governor Christopher Kent speaks (8:30am AEST)
  • ANZ consumer confidence (9:30am AEST)
  • NAB business conditions and confidence (11:30am AEST)

 
China:
  • Industrial production (12:00pm AEST)
  • Fixed asset investment (12:00pm AEST)
  • Retail sales (12:00pm AEST)

 
UK:
  • Inflation (4:00pm AEST)

 
Europe:
  • Employment (7:00pm AEST)

 
US:
  • Small business confidence (10:00pm AEST)
  • Federal budget statement (4:00am Wednesday AEST)

AustraliaPlus


 

Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend