ASX 200 to open higher; BHP, Pilbara in focus today

Image Source: © Wutzkoh | Megapixl.com

Highlights

  • The Australian share market is likely to open higher on Wednesday.

  • According to the latest SPI futures, the ASX 200 is expected to open 11 points or 0.15% higher.

  • On Wall Street, the Dow Jones rose 0.15%, the S&P 500 fell 0.8%, and the NASDAQ ended 2.35% lower.


The Australian share market is likely to open higher on Wednesday despite a poor night of trade on Wall Street. The other global shares also plunged on supply chain concerns and recession fears, while a rise in gold prices may lift domestic gold stocks.

According to the latest SPI futures, the ASX 200 is expected to open 11 points or 0.15% higher. On Tuesday, the benchmark index fell 0.3% to 7,128.8 points.

Meanwhile, BHP Group Ltd (ASX:BHP) would be in focus as its shares are slated to trade ex-dividend for its in-specie dividend. As a result, BHP’s market capitalisation may dip.

In addition, shares of Pilbara Minerals Ltd (ASX:PLS) would be in focus today following the release of the results of the fifth Battery Material Exchange (BMX) auction.

On Wall Street, the Dow Jones rose 0.15%, the S&P 500 fell 0.8%, and the NASDAQ ended 2.35% lower.

In Europe, the Stoxx 50 fell 1.6%, the FTSE dipped 0.4%, the CAC plunged 1.7%, and the DAX ended 1.8% lower. MSCI's gauge of stocks across the globe closed down 0.91%.

Bond yields

  • 2-year yield: US 2.47%, Australia 3.01% (US prices as of 4.30pm in New York)
  • 5-year yield: US 2.74%, Australia 3.31%
  • 10-year yield: US 2.75%, Australia 3.51%, Germany 0.96%

The dollar index fell 0.362%, while the euro was up 0.39% to US$1.0731.

Meanwhile, European Central Bank Chief Christine Lagarde said she saw the ECB's deposit rate at zero or "slightly above" by the end of September, implying an increase of at least 50 basis points from its current level as the bank fights inflation.

On the other hand, the markets took some comfort from US President Joe Biden's comment on Monday that he was considering easing tariffs on China, and from Beijing's continuing promises of stimulus.

Oil prices fall

Oil prices traded little changed as tight supply worries offset concerns over a possible recession and China's COVID-19 curbs.

  • WTI futures settled down 52 cents at US$109.77 a barrel.
  • Brent rose 14 cents to settle at US$113.56.

 

Gold prices inch higher

Gold prices rose to their highest in two weeks as the safe-haven metal's appeal was lifted by a weaker US dollar and lower Treasury yields.

  • US gold futures settled up nearly 1% at US$1,865.40 an ounce.

Meanwhile, Bitcoin last rose 0.99% to US$29,371.04.

RELATED ARTICLE: What’s on the cards for Australia’s climate policy under new govt?

RELATED ARTICLE: Pushpay (ASX:PPH) shares spurt after acquisition talks are confirmed   

RELATED ARTICLE: What is LockPay and is it a pump and dump scheme?


 


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and