Federal Reserve to maintain easy policy: Aus shares to open flat

Market Reports

by Michael Luu

Australian shares are set for a steady start, despite strong gains in markets around the world. The global positive sentiment was sparked by the US Federal Reserve’s  accommodative minutes. The central bank reiterated its intention to maintain easy policy until the economy hits its employment and inflation targets, rather than acting on projections. A collective rally of tech heavyweights such as Apple, Microsoft and Facebook fired up the US benchmarks, as the S&P 500 reached another record high.

The news encouraged upbeat trading across European markets, propelling the pan-European Stoxx 600 to record highs earlier in the session. Meanwhile, Asian markets also gained momentum from progress in vaccination efforts.

Economic News

Today, AiGroup will release its Performance of Services index. And the Reserve Bank is due to release the six-monthly Financial Stability Review. Focus is on the discussion of lending standards. Also, the ABS will release data on building approvals for small geographic areas.

To the figures from around the globe: Wall Street closed higher yesterday: The Dow Jones Industrial Average gained 0.2 per cent to 33,504, the S&P 500 gained 0.4 per cent to 4097 and the NASDAQ closed over 1 per cent higher at 13,829.
 
European markets closed higher, London’s FTSE added 0.8 per cent, Paris gained 0.6 per cent and Frankfurt closed 0.2 per cent higher.
 
Asian markets closed mixed, Tokyo’s Nikkei lost 0.1 per cent, Hong Kong’s Hang Seng gained 1.2 per cent and China’s Shanghai Composite closed 0.1 per cent higher.
 
­Taking all of this into equation, the SPI futures are pointing to a flat start, up 0.03 per cent.
 
Yesterday, the Australian share market closed 1.02 per cent higher at 6999.
 
Company

Lithium miner Jindalee Resources (ASX:JRL) has announced that their McDermitt project is now in possession of the largest lithium deposit in the US by contained lithium in Mineral Resource.

The statement followed recent findings from the company’s latest mineral resource estimate, which was adjusted after a 15-hole drilling project at the site on the border between the US states of Oregon and Nevada.

Shares in Jindalee Resources (ASX:JRL) were placed on trading halt on Wednesday and last traded at $1.84.
 
Turning to currencies

One Australian Dollar at 7:40 AM was buying 76.56 US cents, 55.75 Pence Sterling, 83.62 Yen and 64.24 Euro cents.
 
To Commodities 

Iron Ore has lost 0.3 per cent to US$173.71.
Iron Ore futures are pointing to 0.9 per cent gain.
Gold has added $14.90 to US$1757 an ounce.
Silver was up $0.28 to US$25.52 an ounce.
Oil was down $0.45 to US$57.68 a barrel.
 

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