Local stocks are poised to open higher after the US Federal Reserve eased concerns that interest rates there will be rising anytime soon.
What you need2know:
• SPI futures up 20 points to 5402
• AUD at 94.08 US cents, 95.77 Japanese yen, 69.17 Euro cents and 55.30 British pence.
• On Wall St, S&P 500 +0.8%, Dow +0.6%, Nasdaq +0.6%
• In Europe, Euro Stoxx 50 +0.1%, FTSE +0.2%, CAC -0.1%, DAX +0.1%
• Iron ore adds 1.1% to $US90.30 per metric tonne
• Spot gold up 0.2% to $US1274.62 an ounce
• Brent oil up 0.7% to $US114.26 per barrel
What’s on today
Australia: population data for December quarter, Reserve Bank bulletin on the economy, labour market data;
US leading index for June, US Philadelphia Fed survey.
Stocks to watch
Veteran retailer Solomon Lew has confirmed that he holds a 9.89 per cent stake in takeover target David Jones, making him the largest shareholder ahead of a crucial meeting to approve a $2.2 billion takeover offer from South Africa’s Woolworths.
RBC Capital Markets has maintained a “sector perform” rating on AGL Energy, but cut its price target on the stock to $16.00 a share from $16.50 a share.
Hartleys Research maintains a “speculative buy” recommendation on RTG Mining and a price target of $2.38 per share.
The US dollar retreated against the euro and the yen as the Federal Reserve struck a dovish tone in its post-meeting statement.
In updated interest rate projections, Fed officials still foresaw rates beginning to rise next year. Of 16 individual rate hike projections, the median interest rate stood at 1 per cent by the end of 2015, the same as in March.
However, Fed officials projected a slightly more aggressive path of interest rate hikes for the following year, with the median placed at 2.5 per cent versus 2.25 per cent in March.
Credit Suisse strategists also upgraded their position on the global energy equity sector to “benchmark” for the first time in six years, citing expectations of a rise in the oil price and improving corporate earnings in the sector.
Nickel slid after inventories jumped to a record high, reminding investors that the price has rallied this year ahead of expected shortages due to an Indonesian export ban. Stocks of refined nickel in London Metal Exchange approved warehouses surged by 19,242 tonnes, pushing total stocks to a record 305,970 tonnes.
Chinese commodities trader CITIC Resources Holding has said that more than 100,000 tonnes of alumina stored at Qingdao port was missing, deepening fears that firms exposed to a metals financing scam at the port could face big losses.
US stocks edged higher after the Federal Reserve hinted at a slightly faster pace of interest-rate increases starting next year, but suggested that rates in the long run would be lower than the central bank had previously indicated.
FedEx rose after the world’s No. 2 package delivery reported a better-than-expected rise in quarterly revenue. The gains helped push the Dow Jones Transportation average higher.
Amazon老域名出售 shares jumped after its chief Jeff Bezos unveiled a “Fire” smartphone with free, unlimited photo storage, jumping into a crowded field dominated by Apple Inc and Samsung Electronics.
European stock markets were steady on Wednesday, hovering near multi-year highs reached last week and supported by shares in major energy companies as violence in Iraq pushed up oil prices.
The latest negotiations between US authorities and BNP Paribas on the level of fine it could pay for breaching US sanctions have failed to produce an agreement, sources familiar with the matter said.
General Electric will on Thursday unveil to the French government and unions an improved offer for the energy arm of Alstom, a source close to the US conglomerate said of its efforts to fend off a rival proposal.
What happened yesterday
Shares crept to a two-month low on Wednesday, while bond yields rose, as investors waited for more guidance on the future direction of global monetary policy.
The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index each lost 0.3 per cent, to 5382.7 and 5363.9 respectively, amid lingering caution about conflict in Iraq.