Originally published by IG Markets
US stock markets opened slightly lower and then rallied for the rest of the session. The Dow Jones closed up 1.4% and the S&P 500 up 1.1%. Despite today’s rally, the Dow is still some way off its peak reached in late January. The ASX 200 is set to rally this morning with futures currently up 64 points.
Bond yields have started rising again and the 10-year yield is now back at 2.88%. This is still off the recent highs although further improvement in the stock market could see yield continue their upward climb. Australian yields have had a wild ride recently, the 10-year yield climbed as high as 2.94% in February but fell back to 2.71% in recent days. The yield jumped overnight to 2.79%. Today the Reserve Bank of Australia will make its interest rate decision for the month. The market expects no change in rates but will be looking carefully at the accompanying statement, particularly to judge its outlook for wage growth.
Australia’s retail sales and current account data will also be released today. The current account is expected to show a slightly higher deficit than the previous quarter at -$12.3bn. Retail sales are forecast to climb 0.4% after last month’s 0.5% decline.
Data Releases:
- Australia Retail Sales 11:30am AEDT
- Australia Current Account 11:30am AEDT
- Australia RBA Interest Rate Decision 2:30pm AEDT