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Australian stocks are poised to rise in tandem with Wall Street's positive sentiment, driven by a temporary reversal in global bond sell-offs and a sharp decline in US interest rate hike expectations. The ASX 200 futures gained 0.5 per cent while the S&P 500 advanced on strength in energy and tech sectors. US Treasury yields fell after weaker manufacturing data and safe-haven demand amid concerns over France's fiscal outlook pushed the probability of a Fed rate hike below 25 per cent.
Australian shares are set to rally in line with positive sentiment from Wall Street as the sell-off in global bonds at least temporarily reversed, and US interest rates bets plunged.
Oil surged back above $US102 a barrel. ASX 200 futures were up 39 points or 0.5 per cent to 8672 near 5am . In New York, after fluctuating earlier, the S&P 500 was 0.3 per cent higher at 3.12pm with energy and information tech pacing the advance of five of the 11 industry sectors. After having surged to a 24-year high the previous session, the yield on the US 10-year reversed.
At 3.07pm in New York, it was 5 basis points lower to 5.24 per cent. The 30-year yield was trading at 5.61 per cent. The reversal reflected in part somewhat weaker US manufacturing data, tempering some bets that the Federal Reserve would need to lift rates over the next few months. It also reflected, Bloomberg reported, a rush for safe-haven assets amid rising concerns about France’s fiscal and political outlook.
The probability of a quarter percentage point rate increase plunged below 25 per cent – it was near 70 per cent a week ago.
Australian Shares US Stocks Bond Yields Interest Rates S&P 500
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