- The ASX 200 is expected to fall at open on Tuesday.
- Wall Street closed lower overnight as inflation fears prompted a sell-off in growth-focused tech stocks.
- On Wall Street, the Dow Jones dipped 0.1%, the S&P 500 fell 1%, and the NADAQ dropped 2.55%.
The ASX 200 is expected to fall at open on Tuesday, taking negative cues from Wall Street, which closed lower overnight as inflation fears prompted a sell-off in growth-focused tech stocks. The local share price index futures fell 0.7%. The benchmark rose to record closing highs on Monday. Across the Tasman Sea, New Zealand's benchmark NZ50 fell 0.08% to 12,648.95 in early trade.
On Wall Street, the Dow Jones dipped 0.1%, the S&P 500 fell 1%, and the NADAQ dropped 2.55%.
Here are top 5 things to watch out today:
Source: ©Markrhiggins | Megapixl.com
Australia’s federal budget for 2011-2022
Australian Federal Treasurer Josh Frydenberg will on Tuesday submit the national government’s budget for 2021-2022 to the lower house of parliament at nearly 7:30 PM (AEST). The Treasury assessments released late last year indicated that coronavirus pandemic-induced recession would force Canberra to cut down its spending. However, the labor market has significantly recovered all jobs lost because of the pandemic. Australia is expected to report a record budget deficit for the current financial year.
Stocks to watch
Infrastructure - The government will earmark more than AU$10 billion for road and rail projects to support 30,000 jobs. The stocks in focus would be Bluescope (ASX:BSL), Boral (ASX:BLD), among others.
Children and Families – The budget is expected to have proposals for first-home buyers. The stocks to watch include Commonwealth Bank of Australia (ASX:CBA), Netwealth Group Ltd (ASX:NWL), Hub24 Ltd (ASX:HUB), AUB Group Ltd (ASX:AUB), Janus Henderson Group plc (ASX: JHG), and National Australia Bank (ASX:NAB).
Energy and climate: The government will invest AU$275.5 million to fund development of four hydrogen hubs. The stock to watch are Santos Limited (ASX:STO) Beach Energy Limited (ASX:BPT) and Oil Search Energy Limited (ASX:OSH).
Health - Telehealth services for general practitioners, allied health providers and specialists will be extended to December. The stocks to watch would be Healius (ASX:HLS), Sonic Healthcare (ASX:SHN), maong others.
Private education – The colleges reliant on international students could see an AU$53 million package to support local students. The stock in focus would be IDP Education (ASX:IEL).
Tech shares could face pressure
Major tech stocks such as Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) could be under pressure today after tech heavy US stock index NASDAQ’s 2.55% decline in the overnight trade. However, Afterpay and Zip could take some positive from the fact that their US rival Affirm jumped after a strong update.
Commodity prices continue rally
The price of iron ore surged for a third consecutive trading day. The prices have soared over 20% in the last week amid increased production of steel in Chinese mills. S&P Global Platts said its IODEX 62% iron ore index rose US$16.80 or 7.9% to US$229.55 a tonne.
The June gold contract was up 0.24% or US$6.30, to US$1,837.60 an ounce. The miners include Northern Star Resources Limited (ASX:NST), De Grey Mining Limited (ASX:DEG), Resolute Mining Limited (ASX:RSG) could trade higher.
However, crude oil prices fell marginally. WTI crude oil price fell 0.15% to US$64.80 per barrel, while Brent crude was down 0.15% to US$68.19 a barrel. Australian energy companies such as Santos Limited (ASX:STO) Beach Energy Limited (ASX:BPT) and Oil Search Energy Limited (ASX:OSH) could face pressure.
Meanwhile, the Organisation of the Petroleum Exporting Countries (OPEC) would release its monthly report on the global crude oil market on Tuesday.
China’s factory inflation data
China would release consumer and factory inflation data today. It would show if producer prices were on rise, adding to global inflation pressures. The data is expected to guide global markets on future consumption scenario. Metal & mining and energy stocks would be in focus. Census results also would finally be released this week.
Source: © Paultama | Megapixl.com
Weekly payroll jobs and wages data
The Australian Bureau of Statistics would release weekly data on payroll jobs and wages later today. The data would be for the week ending 24 April 2021. The payroll jobs fell by 1.8% in the fortnight to 10 April 2021, compared with an increase of 0.2% in the previous fortnight.