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Australian shares set to rise, US bonds stabilize, oil dips

Published 06/10/2023, 08:40 am
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Investing.com - The Australian share market is predicted to experience a slight uplift at the start of Friday's trade, following a calming period in the US bond and equity markets. This shift comes ahead of the crucial non-farm payroll data, which is expected to provide insights into the Federal Reserve's next decision on interest rates.

The declining trend on Wall Street was mitigated after new data revealed a moderate increase in the number of Americans filing for unemployment benefits. Nonetheless, the figures remained close to record lows, indicating a stable labor market.

ASX 200 Futures exhibited an increase of 8 points, or 0.1%, while the Australian dollar appreciated by 0.5%, trading around 63.57. Both the S&P 500 and the NASDAQ Composite experienced a minor decrease of 0.1%, as investors anticipate the release of important US non-farm payrolls data this Friday.

In addition, crude oil prices continued their downward trend, fuelled by worries that a global economic slowdown could decrease demand. West Texas Intermediate oil prices settled near $US82 a barrel, marking the first time since July that they've fallen below their 50-day moving average.

The yield on the US 10-year bond eased to 4.7% after reaching a 16-year high of approximately 4.88% earlier this week. The 30-year bond yield, which recently hit the 5% mark, was progressing towards 4.9% in Thursday's session.

San Francisco's Federal Reserve Bank President, Mary Daly, suggested that if the labor market and inflation continue to show signs of cooling, policymakers could opt to maintain steady interest rates. Daly also implied that the recent surge in bond yields could serve as an additional reason for the Federal Reserve to keep its benchmark rate at its current level.

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