The Australian share market is set to open higher, with the SPI futures tipping a gain of over 27 points, after Federal Reserve Chair Janet Yellen informed lawmakers that future rate hikes would be gradual.
The Dow Jones jumped 125 points to post a record intra-day and closing high. Shares in DuPont offered the most gains.
The S&P closed in the black with real estate and energy leading the charge.
The Nasdaq composite also over performed, rising 67 points, as Paypal shares hit a record high.
US Treasury yields fell after Ms Yellen’s testimony, with the benchmark 10-year note yield trading lower to 2.32 per cent.
US economic newsFederal Reserve Chair, Janet Yellen, delivered her ‘Semi-annual Monetary Policy Report’. She informed that US rates would not need to rise significantly higher. She reported that the Fed expects the evolution of the economy will warrant gradual rate increases over time. The Fed also expects to start reducing its balance sheet gradually this year.
The Federal Reserve has released the Beige Book for the period between late-May to June. This is the Fed’s periodic gauge of the US economy’s health, based on its surveys with businesses, across twelve districts.
It revealed the US economy expanded at a slight-to-moderate pace. Inflation and wage growth remained generally subdued, despite a tight labour market. The Fed added that prices rose modestly, and that further price growth is expected in the medium-term.
Local economic news The Bureau of Statistics will release the lending finance figures for May, which includes housing, personal, commercial and lease loans.
We are also expecting Australia’s central bank to release its debit and credit card lending data for May.
MarketsWall Street closed higher yesterday: The Dow Jones Industrial average gained 0.6 per cent to close at 21,532, the S&P 500 added 0.7 per cent to close at 2,443 and the NASDAQ gained 1.1 per cent to close at 6,261.
European markets closed higher: London’s FTSE rose 1.2 per cent, Paris gained 1.6 per cent and Frankfurt increased 1.5 per cent.
Asian markets closed mixed: Tokyo’s Nikkei slipped 0.5 per cent, Hong Kong’s Hang Seng rose 0.6 per cent and China’s Shanghai Composite fell 0.2 per cent.
The Australian share market closed lower yesterday: The S&P/ASX 200 Index closed 55 points down to finish at 5,674. On the futures market, the SPI is 27 points up.
Company news:Oliver’s Real Food Limited
(ASX:OLI) has executed a binding agreement for $2.2 million to acquire freehold property, and existing business Sexie Coffee’ in Maryborough, Queensland. The food retailer says the acquisition will be entirely funded from IPO proceeds, and the store rebranded as Oliver’s Maryborough. The company says a deposit for the purchase has been made, and completion is expected on 1 September 2017. Shares in Oliver’s Real Food Limited
(ASX:OLI) closed 1.52 per cent higher to 33 cents.
Currencies The Australian Dollar at 7.30AM was buying 76.80 US cents, 59.62 Pence Stirling, 86.94 Yen and 67.29 Euro cents.
Commodities Gold has gained $5 to $US1,220 an ounce.
Silver has jumped 14 cents to $US15.88 an ounce.
Oil has increased 39 cents to $US45.62 a barrel.
