ASX to rise, US stocks rally on rate rise outlook

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Australian shares set to gain on Thursday, after Wall Street rallied after minutes from the US central bank gave investors hope the economy can avoid recession.

Australian shares are set to gain on Thursday, after Wall Street rallied after minutes from the US central bank gave investors hope a recession could be avoided and higher than expected rate rises could tackle inflation.US stocks rose on Thursday, while the yield on the 10-year U.S. Treasury note was little changedASX futures was up 0.2 per cent, to 7,156, by 7:10am AEST and the Australian dollar gained 0.3 per cent, to 70.87 US cents.

Overnight, the yield on the 10-year US Treasury note stalled, around 2.75 per cent, while shares gained after the FOMC minutes were released. "The uniformity of opinion is a good thing," said Ross Mayfield, investment strategy analyst at Baird."By the time [the Fed] gets to September, they will have plenty of economic data to make their move from there," Mr Mayfield added.

Nine of the 11 major sectors in the S&P 500 rose, with consumer discretionary stocks leading the pack with a gain of 2.8 per cent.Department store operator Nordstrom surged 14 per cent on the heels of its upbeat annual profit and revenue forecasts.

 

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