ASX 200 is likely to open on a positive note

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Summary

  • 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.

Image Source: ID 46702790 © Embe2006 | Megapixl.com

On Wall Street, the S&P 500 gained 0.33%, making a new record close, while the Nasdaq Composite surged 1.05%. However, the Dow Jones Industrial Average lost 0.2%.

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.

Image Source: ID 84252672 © Marianvejcik | Megapixl.com

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.

 


Image Source: ID 67200293 © Colicaranica | Megapixl.com

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.

Image Source: ID 2013267 © Anchesdd | Megapixl.com

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.

Image Source: ID 7997155 © Ayres | Megapixl.com

Brent crude futures inched up 39 cents to settle at US$63.67 a barrel. The WTI crude futures settled up 48 cents at US$60.18 a barrel.

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.


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