US markets closed slightly higher overnight, defying yesterday’s sell-off in Asia that was sparked by concerns over China’s property sector.
Chinese home prices rose 9.1% last month, making it the fourth consecutive month where growth has slowed.
Fears that a burst in China’s property bubble will lead to a national credit squeeze have seen iron ore prices collapse recently, this badly damaging sentiment in yesterday’s Asian session.
The gains on the Street instead came on the back of comments from Fed President, John Williams, who said it will likely be more than a year before the central bank begins raising interest rates.
In commodity markets, iron ore extended its slide and slipped below $100 a ton for the first time in almost two years.
Oil climbed amid reports of political chaos in Libya that may disrupt crude shipments from the oil producing nation.
Elsewhere, nickel soared 5%, with traders snapping up the metal after last week’s losses and betting on prospects of supply tightening further after Indonesia’s ban on ore exports.
In the currency space, the Aussie dollar weakened slightly ahead of today’s RBA meeting minutes for May, which traders believe won’t offer clues on when the central bank will begin raising interest rates.