Morning (AM) Market Report

Details

Published on Tuesday, 30 August 2016 00:00

U.S. markets finished higher overnight as investors prepared for the possibility of rate hikes by the Federal Reserve in the coming months, according to media reports.

Tuesday, 30th August, 2016

The strengthened case for a rate rise, which followed comments from Fed officials on Friday, delivered a boost to bank shares, which tend to benefit the most in the face of higher interest rates, the reports said.

At the closing bell, the Dow Jones & the S&P 500 were up 0.6% and 0.5%, respectively, while the Nasdaq was up 0.3%.

For Australian ADRs listed on the NYSE, BHP Billiton rose 12 cents (0.37%) to $32.21, ResMed declined $1.15 (-1.67%) to $67.90, Telstra Corporation was up 12 cents (0.60%) to $20.16 and Westpac slipped 7 cents (-0.31%) to $22.70. At 7:45 am (AEST), the 10-year Treasury note yield was 1.56% and the 5-year yield was 1.17%. European markets finished mixed on Monday. The FTSE 100 rose 0.3%, while the French CAC 40 and Germany's DAX both fell 0.4%. Asian markets were also mixed. The Hang Seng fell 0.4%, the Nikkei 225 gained 2.3%, and the Shanghai Composite ended flat. India's Sensex rose 0.4%.

Ahead of the local open, SPI futures were 18 points higher at 5,469.