Diplomatic Hopes Boost Markets Ahead of RBA Rate Decision
Australia's investors are poised for a modest start to the week, with S&P/ASX 200 futures indicating a potential 3-point gain on Monday.
The optimism comes after a positive session on Wall Street on Friday, where US equities including the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite saw gains amid renewed hopes for a diplomatic resolution between the US and Iran.
Iran's offer to reopen the Strait of Hormuz and resume nuclear program talks has sparked optimism that oil prices may be headed lower, with crude briefly dipping below $104 per barrel on Friday.
The S&P 500 rose 0.5% to 7743.4, led by information technology and industrials sectors, while the bond market saw relief as the 10-year Treasury note yield finished lower at 5.16%.
In Australia, attention is now focused on Tuesday's Reserve Bank of Australia (RBA) board meeting, where markets expect another interest rate hike to combat inflationary pressures.