The Australian sharemarket is set for another strong open, boosted by a positive session on Wall Street. US stocks rose and Treasury yields fell after comments from Federal Reserve officials bolstered speculation the central bank is heading toward another pause in interest rate hikes.
The 10-year Treasury yield came off its 16-year peak, on track for its steepest single-day drop since May, as trading resumed in the US bond market which had been closed for a holiday on Monday. Ten-year yields tumbled as much as 18 basis points to 4.62 per cent. Fed swaps currently show about a 60 per cent chance the Fed will stay on hold in December, compared with 60 per cent odds on another hike by then, just a week ago.
“Everybody has one eye on the Middle East conflict and one eye on what’s happening with bond yields. The decline in bond yields is the key driver today,” said John Praveen, managing director & co-chief investment officer at Paleo Leon.While the Fed’s dovish comments were helping stocks on Tuesday and investors were being sanguine about the Middle East, Praveen said that view could change if for example the fighting spread to other countries in the region.
All 11 major S&P 500 sectors were advancing with materials and consumer staples leading gains, while technology was the slowest gainer. Energy was among the laggards after its more than 3 per cent rally on Monday. The shekel regained its footing as the central bank duelled short sellers to contain the market fallout from Israel’s conflict with militant group Hamas.
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Source: brisbanetimes - 🏆 13. / 67 Read more »