ASX 200 on Friday: Top five things to watch out for

Summary

  • The ASX 200 is expected to end the last data of the week on a positive note after the US stocks edged higher overnight.
  • The benchmark may open 3 points higher on Friday morning.
  • On Wall Street, the Dow Jones edged higher, the S&P 500 rose 0.5%, and the NASDAQ jumped 0.8% in the overnight trade.

The ASX 200 is expected to end the last data of the week on a positive note after the US stocks edged higher overnight, with S&P setting a new closing record. The benchmark may open 3 points higher on Friday morning.

On Thursday, the ASX 200 index closed 0.4% higher at 7,302.5.

On Wall Street, the Dow Jones edged higher, the S&P 500 rose 0.5%, and the NASDAQ jumped 0.8% in the overnight trade.

READ MORE: Why are these ASX resource stocks on investors’ radar?

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Key data releases for Friday

Australian calendar – The Australian Bureau of Statistics (ABS) has no major data releases scheduled for today.

Global calendar - China’s May vehicle sale; UK’s May industrial production; and US’ June industrial sentiment.

US inflation data

The US stocks rose despite the annual inflation rate accelerating to a higher-than-expected 5% in May, marking the highest annual inflation rate in nearly 13 years. Excluding volatile food and energy prices, the core consumer price index (CPI) rose 3.8% over the last year.

The higher rate of inflation on economic rebound amid economic reopenings, vaccinations, government stimulus and vast central bank support, may push up the prospect of stimulus slowdown. The other data showed that the first-time claims for jobless benefits continued to drop last week. The Australian investors would closely track the data to take a cue for the coming week.

READ MORE: Which are the top 10 ASX-listed dividend stocks by dividend yield?

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Crude oil prices hit new two-year highs

The crude oil prices hit a two-year high overnight amid a rise in demand expectations.  Brent futures settled 30 cents higher at US$72.52 a barrel, while US West Texas Intermediate (WTI) crude rose 33 cents to settle at US$70.29 a barrel. The major energy stocks Beach Energy (ASX:BPT) and Santos (ASX:STO) could trade higher on the last day of the trading week.

Gold prices edge higher

The rise in inflation in the US triggered an increase in prices of the yellow metals, which is traditionally considered a hedge during price rise. The US gold futures settled at 1,896.40 an ounce. Gold stocks such as Newcrest Mining (ASX:NCM) and Northern Star Resources (ASX:NST) could trade higher today.

Iron ore prices rise

The iron ore prices too surged on Thursday as benchmark steel futures in Shanghai increased for second session in a row. The most-traded iron ore for September delivery on China's Dalian Commodity Exchange ended daytime trading 0.7% higher at 1,178 yuan (US$184.53) a tonne.

READ MORE: How much should you invest to make AU$3,000 a month?


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