ASX 200 on Thursday: Top 5 things to watch out

Summary

  • The Australian shares are expected to open marginally lower on Thursday as a US inflation rise fuels fears.
  • The ASX 200 is expected to open lower by 0.2%.
  • The sentiment would be low as investors would now be concerned about further selling of growth stocks on Wall Street amid prospects of tighter monetary policy.

The ASX 200 is expected to open marginally lower on Thursday amid concerns around stronger-than-expected US inflation data. The sentiment would be low as investors would now be concerned about further selling of growth stocks on Wall Street amid prospects of tighter monetary policy.

The local share price index futures fell 0.4%. The domestic equity benchmark closed lower on Wednesday.

The Dow Jones shed 1.3%, while the S&P 500 fell by 1.5%, its biggest single day fall in over 2 months. NASDAQ lost 2.3%, falling to the lowest level since 31 March 2021. 

Here are top 5 things to watch out for today:

Source: ©Markrhiggins | Megapixl.com

US inflation rise fuels fears

The US inflation soared to the highest level in nearly 13 years in the aftermath of the COVID-19 pandemic. Treasury yields climbed for a fourth straight session.

Federal Reserve Vice Chairman Richard Clarida said, “This number was well above what I and outside forecasters expected.”

READ MORE: Five ASX stocks that may safeguard portfolio amid rising inflation

Xero full-year results to guide market

The tech firm Xero (ASX:XRO) today released results for financial year 2021. The company’s revenue surged 18% to NZ$848.8 million while net profit soared 493% to NZ$19.8 million. EBITDA climbed 39% to NZ$191.2M.  The total global subscribers rose by 456,000 or 20% to reach 2.74 million in FY2021.

Crude oil rises, gold falls

The gold prices fell after US inflation data revealed a quicker-than-expected recovery. Spot gold index was down by 1% to US$1,817.3 an ounce.

The rise in demand expectations pushed up oil prices to eight-week highs. The WTI crude surged by 1.2% to US$66.08 a barrel, the highest close since 11 March. Brent crude gained 1.1% to US$69.32 per barrel, a close last seen on 5 March. Energy stocks such as Santos Limited (ASX:STO), Origin Energy Limited (ASX:ORG), and Woodside Petroleum Limited (ASX:WPL) could be in focus today.

READ MORE: Is 2021 going to be a sparkling year for aluminium?

Meanwhile, the prices of iron ore rebounded to US$230 a tonne, extending the rally on demand for both the steel-making material and steel. The spot price of iron ore rose US$8.64 or 3.8% to $US237.57 per tonne on Wednesday. S&P Global Platts said its IODEX 62% iron ore index rose to $US233.10 a tonne, a 21% rise on the last week’s figures.

READ MORE: Three ASX shares that are trading at a bargain

Source: © Paultama   | Megapixl.com

Moderna to supply 25 million COVID-19 doses to Australia

In a big boost to Australia’s vaccination program, COVID-19 vaccine maker Moderna has announced a deal last night to supply 25 million doses to Australia, 10 million of which would be delivered this year. In the budget, the Australian government had announced an unspecified amount of funding to help create immediate, large-scale manufacturing of messenger RNA drugs in the country. 

International merchandise trade data

The Australian Bureau of Statistics (ABS) will release data on international merchandise trade today for reference period 2018.

Meanwhile, April inflation data for Argentina and greater Buenos Aires will be released today. In March, the monthly readings for the two economies were 4.8% and 5.2%, respectively. The central banks of Mexico, Chile, and Peru will also announce rate decisions today.

READ MORE: Why is Clean Energy Council not pleased with federal budget?


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