ANALYST TAKE: “The big event of the day will come in the form of Yellen’s appearance, which coming just a few days after a game changing payrolls number, will be likely to see a significantly different tone”, said Joshua Mahony, Market Analyst at IG.
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The price of raw materials ranging from soybeans to copper all rose overnight.
European shares advanced in early trading on Tuesday, mirroring gains on Wall Street and in Asia after Federal Reserve Chair Janet Yellen dropped a reference to the timing of any increase in U.S. interest rates in her latest speech.
Wellington’s NZX 50 and Sydney’s ASX 200 both rose in early trading, led by mining shares.
ASIA’S DAY: Japan’s Nikkei 225 rose 0.6 percent to 16,675.45 while South Korea’s Kospi gained 1.3 percent to 2,011.63.
“When you get a Fed that is now perceived to be lower for longer (on interest rates), with a dollar that is less likely to rally, and an economy that may be slowing but is not in recession, that has tended to be a positive for those stocks in 2016”, said Julian Emanuel, U.S. equities and derivatives strategist for UBS. Dow futures rose 0.3 percent while S&P also gained 0.3 percent. Though she said the US economy was fundamentally strong despite last week’s surprisingly weak jobs data for May, she shied away from sketching any timetable for when the Fed might raise interest rates again because of a myriad of uncertainties, including low inflation and the uncertainty over a British vote on June 23 on whether to leave the European Union.
Aso declined to comment on U.S. Treasury Secretary Jack Lew’s remark over the weekend that described recent currency market moves as “orderly” in a sign of caution towards currency intervention. The Nasdaq composite index gained 0.5 per cent to 4,968.71.
Three-month copper on the London Metal Exchange had slipped 0.7 per cent to $4,656.50 a tonne after it had hit its highest in four weeks while zinc, another key industry metal, was at its highest in nearly a year. The Standard & Poor’s 500 index added 9 points, or 0.4 percent, to 2,118.
Global crude benchmark Brent futures hit a seven-month high of $50.83 per barrel on Monday before easing to $50.46 early on Tuesday.
Meanwhile, oil prices remained higher after rallying on Monday, helped by supply disruptions in Nigeria.
Singapore put on 0.7 percent, and Manila 1.8 percent while Taipei and Jakarta also racked up significant gains.
BIOGEN BOUNCED: Drugmaker Biogen tumbled $33.97, or 11.7 percent, to $255.87 after the company said an experimental multiple sclerosis drug, opicinumab, failed in a mid-stage clinical trial. Southwest Airlines picked up $1.41, or 3.4 percent, to $43.18 and Delta rose $1.20, or 2.9 percent, to $42.48. The FTSE 100 index of leading British shares edged up 0.2 percent after a hefty gain on Monday. Elsewhere Germany’s DAX rose 0.4 percent and France’s CAC 40 was up 0.2 percent.
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CURRENCIES: The dollar rose to 107.16 yen from 106.68 yen. The euro inched up to $1.1350 from $1.1347.
