ASX 200 today: What to expect ahead of US Fed meet

Summary

  • The Australian shares opened higher on Tuesday ahead of US Federal Reserve meet.

  •  

     On Monday, both S&P 500 and NASDAQ closed at record highs overnight ahead of a deluge of earnings reports this week.

  •  Metals & Mining and Resources were trading higher in the opening trade.     

The ASX 200 on Tuesday opened higher, up 7.70 points or 0.11% to 7,053.30 after S&P 500 and NASDAQ closed at record highs overnight ahead of a deluge of earnings reports this week. The rally in US stocks was triggered by rise in Tesla Inc and other heavyweight growth stocks.

Over the last five days, the ASX 200 has gained 0.51% and was currently 0.58% off its 52-week high.

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According to experts, investors would closely track two-day Federal Reserve meeting beginning Tuesday. The US Fed was expected to provide further clarity if the employment scenario has affected its plan to leave interest rates near zero for an extended time and to continue buying US$120 billion in bonds each month. 

Source: © Ymgerman   | Megapixl.com

Gainers and losers

Bingo Industries (ASX:BIN), Bluescope Steel (ASX:BSL) and Alumina (ASX:AWC) were the top gainers in the opening trade rising as much as 7%. Flight Centre Travel (ASX:FLT) and Credit Corp Group (ASX:CCP) were the top laggards.

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Sectoral movement

Metals & Mining and Resources were trading higher in the opening trade. Materials was also up. Rest all sectors were trading in the red.

Bond yields edge up

The 10-year Australian bond yield rose by 0.71% to 1.694.  Yields on the 10-year US Treasury benchmark notes saw an uptick of 0.35% to 1.5684%.

Australian dollar rises

The Australian dollar was trading up 0.12% to 0.7802. The US dollar index dipped 0.03%.

Gold prices climb

Spot gold inched up 0.2% to US$1,780.16 an ounce and the US gold Futures settled 0.1% higher at US$1,780.10 an ounce.

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