AustraliaASX Set to Rise
The Australian share market is expected to open higher, following a surge in tech stocks on Wall Street. The Nasdaq Composite hit a record high, despite rising US bond yields.
Global Newsflix 2 min read
The Australian share market is set to rise, with S&P/ASX 200 Index futures up 27 points or 0.3 per cent to 8750 near 7am AEDT.
The Nasdaq Composite rallied 1.1 per cent in New York, resetting both its intraday and closing records, even as US bond yields pressed higher.
The yield on the US 10-year note briefly traded at 5.34 per cent, with the 30-year yield reaching 5.7 per cent.
Auctions of 10- and 30-year debt this week will test demand, as investors weigh the impact of rising bond yields on the market.
On Wall Street, the S&P 500 added 0.7 per cent, pulling within 0.3 per cent of its all-time high, while the Dow Jones Industrial Average rose 0.2 per cent.
The Australian dollar is higher at US69.69¢, as the market reacts to the latest developments in the US.
PTC leaped 33.5 per cent, after Schneider Electric of France said it would pay $US205 in cash for each of the software company’s shares in a deal valuing it at about $US22.6 billion.
RXO jumped 22.5 per cent, after C.H. Robinson Worldwide said it would buy the truck brokerage business in a deal where RXO investors could get $US30.25 in cash for each of their shares.
Key facts
- ASX set to open higher, with S&P/ASX 200 Index futures up 27 points
- Nasdaq Composite hits record high, despite rising US bond yields
- US 10-year note yield briefly trades at 5.34 per cent
- Auctions of 10- and 30-year debt to test demand this week
Three perspectives
Neutral
The Australian share market is expected to open higher, following a surge in tech stocks on Wall Street. Investors will be watching the impact of rising bond yields on the market. The market will also be reacting to the latest developments in the US.
Positive
The surge in tech stocks on Wall Street is a positive sign for the Australian share market. The deal between Schneider Electric and PTC is a significant development, valuing the software company at about $US22.6 billion.
Negative
Rising US bond yields could have a negative impact on the market. The Australian dollar's movement will be closely watched, as it reacts to the latest developments in the US.
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