- ASX 200 is expected to open around 0.25% or 18 points higher today.
- The S&P 500 rose to record highs on Tuesday, led by surging technology-related stocks.
- The dollar index fell 0.29% and the Australian dollar was up by 0.21 per cent to 0.7642.
On Tuesday, the Australian market had closed flat at 6976.9 after falling 0.3% on the first day of the week. Today, the benchmark index is ready to open on a higher note, despite facing stiff resistance near 7,000 mark. According to the ASX 200 futures, the spot index is expected to open around 0.25% or 18 points higher today.
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The S&P 500 rose to record highs on Tuesday, led by surging technology-related stocks, as Treasury bond yields eased after U.S. consumer price data for March 2021 depicted that the pace of inflation was not rising wildly.
Read More: A Quick Look at the Performance of ASX 200
The consumer price index inched up 0.6%, the biggest increase since August 2012, as rising vaccinations and fiscal stimulus unleashed pent-up demand. But the data is unlikely to change Fed’s Chair, Jerome Powell's expectations that higher inflation in the coming months will be transitory.
Benchmark 10-year notes fell 5.6 basis points to yield 1.6198%, well below a 14-month high of 1.776% hit on March 30. The yield curve flattened further after auctions which were held last week.
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The US dollar fell and equity markets took the data in stride, especially technology-heavy indices whose stocks can be affected by rising debt costs.
The US dollar was mildly up on the CPI data before reversing course and falling to three-week lows after surging to multi-month peaks in March as markets anticipated fiscal stimulus would spur faster U.S. economic growth and higher inflation.
The dollar index fell 0.29%,while and the Australian dollar was up by 0.21 per cent to 0.7642.
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Bitcoin hit a record of $63,769, extending its 2021 rally to new heights a day before the listing of Coinbase shares in the United States.
Read More: Bitcoin Mania- Bubble or Boom?
Gold prices traded higher
Gold prices, a traditional hedge against inflation, reversed from the lowest level in more than a week. The U.S. gold futures settled up 0.9% at US$1,747.6 an ounce.
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Australian gold miners such as Newcrest Mining Limited (ASX:NCM), Evolution Mining Limited (ASX:EVN), WestGold Resources Limited (ASX:WGX) and Regis Resources Limited (ASX:RRL) could trade higher today.
Crude oil price traded higher
Strong Chinese import data led to an increase in crude oil prices. However, the rally was capped by concerns that pauses on the J&J vaccine could delay the economic recovery and limit oil demand growth.
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The rise in the crude oil prices could have a direct impact on the Australian energy players such as Elixir Petroleum Limited (ASX:EXR), Oil Search Limited (ASX:OSH), Vintage Energy Limited (ASX:VEN) and Woodside Petroleum Limited (ASX:WPL).
Stock specific action
Tech shares should be on investors’ radar for the day after a strong demand of US tech shares led tech-heavy NASDAQ near to its all-time high. Shares such as Afterpay Limited (ASX:APT), Zip Co Limited (ASX:Z1P), Xero Limited (ASX:XRO) and Whispir Limited (ASX:WSP) could attract investors’ attention today.