ASX to rise, US stocks higher on Powell’s focus

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Australian shares are set to advance in line with gains in New York. US 10-year yield drops. Iron ore falls below $US110 a tonne.

Australian shares are poised to rise, following Wall Street. While Federal Reserve chairman Jerome Powell reiterated his focus on checking inflation, investors were assuaged that he didn’t signal a further hawkish tilt.The local currency slid 0.6 per cent ; the Bloomberg dollar spot index slipped 0.2 per cent.The yield on the US 10-year note tumbled 12 basis points to 3.16 per cent at 2.51pm in New York.

More than 1000 employees will be affected and about half of them will be moved to different divisions within the bank, according to Bloomberg. Material stocks slid as iron ore and copper prices slumped on China supply and growth worries. Oil and gas stocks slipped 3.3 per cent as crude prices dropped on US President Joe Biden’s plan to cut fuel costs for drivers.Germany’s DAX dropped 1.1 per cent as BASF slid 5.8 per cent after the German chemical group’s CEO said the company is likely to face a considerable downturn early in the second half of the year.

Dhar also said China’s COVID-19 zero policy has “magnified downside pressure on China’s property sales and property construction” which accounts for 30 per cent of the nation’s steel demand.

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