Originally published by Rivkin Securities
The ASX looks set to eke out small gains this morning after positive, albeit minor, gains abroad. Gains in the US actually petered out as US Treasuries, with stronger-than-anticipated reports on U.S. services and private payrolls, helping drive up the yield on 10-year Treasuries more than 10 basis points Wednesday to 3.18%. The services and private payrolls underscored the economy’s robustness at the same time Chairman Jerome Powell signalled the Federal Reserve will continue with rate hikes. This comes ahead of the monthly U.S. payrolls report on Friday that is expected to show the unemployment rate dropping to 3.8%, matching the May figure for the best level since 1969.
Elsewhere, crude in New York rose past $76 a barrel, trading near the highest level in almost four years, while the Australian dollar was trading at US71.07c which represents a near-9% year to date loss.