Wall Street Surges Ahead of Jerome Powell’s Testimony

Australian shares are expected to begin the day higher, following a solid night of foreign stock trading.

Markets at 7:10am (AEDT):

  • ASX SPI 200 futures +0.4pc, ASX 200 (Monday’s close) +0.7pc at 6,042
  • AUD: 78.48 US cents, 56.21 British pence, 63.77 Euro cents, 83.98 Japanese yen, $NZ1.07
  • US: Dow Jones +1.5pc at 25,689, S&P 500 +1.1pc at 2,777, Nasdaq +1pc at 7,414
  • Europe: FTSE +0.6pc at 7,290, DAX +0.4pc at 12,527, Euro Stoxx 50 +0.8pc at 3,468
  • Commodities: Brent crude +0.2pc at $US67.45/barrel, spot gold +0.3pc at $US1,332.34/ounce, iron ore +0.7pc at $US79.36/tonne

While European markets closed with modest gains, Wall Street’s main indexes have lifted sharply higher.

The Dow Jones has surged by 1.5 per cent to 25,689, while the S&P 500 and Nasdaq have jumped by more than 1 per cent each.

Almost every S&P sector posted gains, with technology and telecommunications being the best performers so far.

US markets rose ahead of new Federal Reserve Chairman Jerome Powell giving his first semi-annual testimony before Congress tomorrow.

Investors are particularly interested in hearing where he sees interest rates this year.

The market’s expectation is that Mr Powell will stick to the approach of gradually lifting rates, despite indications that inflation is perking up.

His testimony comes at a time when markets are anxious about the pace of rate hikes, which led to a correction in global markets earlier this month.

The Australian dollar is steady across the board. It is buying about 78.5 US cents, 56.2 British pence and 63.9 euro cents.

Reporting season is nearly over, and more than 90 per cent of companies have already reported their financial results.

Caltex and Lend Lease are the major companies reporting their half yearly profits today.

More to come.