ASX 200 on Wednesday: Top 5 Things You Shouldn’t Miss Today

Summary

  • ASX 200 is expected to open lower on Wednesday after blue-chip tech firms dragged NASDAQ by more than 2% lower.
  • The local share price index futures fell 0.4%, a 58.9-point discount to the underlying ASX 200 index close.
  • The benchmark equity index ASX 200 ended 0.6% higher on Tuesday.

ASX 200 is expected to open lower on Wednesday after blue-chip tech firms dragged NASDAQ by more than 2% lower, pulling down Wall Street from its record trading levels overnight. So, the ASX-listed tech stocks would be in focus in today’s trade. The local share price index futures fell 0.4%, a 58.9-point discount to the underlying ASX 200 index close. The benchmark equity index ASX 200 ended 0.6% higher on Tuesday.

On Tuesday, US Treasury Secretary Janet Yellen said that she did not anticipate that inflation would be a problem for the US economy, as price increased during the recovery should be transitory. Speaking at an event, Yellen clarified earlier remarks that interest rates might need to rise modestly to prevent the economy from overheating. “It’s not something I’m predicting or recommending,” she said.

While the NASADAQ Composite Index dropped 261.61 points, or 1.9%, to 13633.50, the S&P 500 slid 28 points, or 0.7%, to 4164.66. The Dow Jones Industrial Average settled higher 19.80 points, or 0.1%, to 34133.03.

Meanwhile, across Tasman Sea, New Zealand's benchmark NZX 50 index fell 0.4% to 12,859.07 in early trade.

Reserve Bank of Australia keeps rates unchanged

The Reserve Bank of Australia (RBA) on Tuesday kept both official interest rate and yield target on the three-year bond yield unchanged at 0.1%. The RBA, however, upgraded the gross domestic product (GDP) growth scenario, with the growth of 4.75% expected over 2021 and 3.5% over 2022.

RBA Governor Philip Lowe said that Australia’s economic recovery had been faster than expected earlier. Even as the global economy continues to recover amid the coronavirus pandemic, the growth outlook remains robust for 2021 and 2022, Low added.

On Tuesday, commodity-related stocks led the way on the benchmark index. Gold and mining stocks led the gains on strong metals prices, while tech stocks lost ground. The metals and mining index climbed 2.3%.

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

Source: ©Lassedesignen  | Megapixl.com

Coronavirus pandemic scenario in India

India added more than 355,000 cases on Tuesday, down from more than 400,000 daily infections on 30 April. Investors continued to monitor the COVID-19 situation in India. The World Health Organisation (WHO) said last week that one in every three new coronavirus cases globally was being reported from India.

Crude oil rises, gold falls

The crude oil prices surged after more US states eased COVID-19 pandemic-related restrictions and the European Union sought to focus on tourism. Brent crude Futures settled US$1.32 up, at US$68.88 a barrel, while WTI crude Futures rose US$1.20 to close at US$65.69 a barrel. Oil stocks such as Woodside Petroleum Ltd (ASX:WPL), Oil Search Ltd (ASX:OSH), and Santos Ltd (ASX:STO) would be in focus today.

Gold fell almost 1% after the US Treasury Secretary Janet Yellen said interest rates might need to rise. The US gold Futures last traded at US$1,776 an ounce, falling 0.9%. Australian gold miners might take a hit due to falling gold prices. Shares of Silver Lake Resources Ltd (ASX:SLR), Newcrest Mining Ltd (ASX:NCM), and De Grey Mining Ltd (ASX:DEG) would be closely watched.

Palladium prices soared to an all-time high of US$3,017 an ounce.

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

Company announcements

Australia and New Zealand Banking Group Ltd (ASX:ANZ) shares would be in focus after the bank on Wednesday announced that its cash profit from continuing operations had more than doubled to AU$2.99 billion in the half year ended 31 March 2021, compared to AU$1.41 billion a year ago.  

Nearmap Ltd (ASX:NEA) shares would also be on investors’ radar following a market update Tuesday. According to the release, trading has remained robust and the company now expects to deliver annual contract value (ACV) of AU$128 million to AU$132 million in FY 2021, as against a guidance of AU$120 million to AU$128 million.

Source: Djbobus | Megapixl.com

READ MORE: Why investing in gold stocks can add feather to your portfolio cap

ABS data on building approvals

The Australian Bureau of Statistics is all set to release data today on building approvals for the reference period of March 2021. The data is critical since it provides the number of dwelling units and value of buildings approved. The seasonally adjusted estimate for total dwellings approved rose 21.6% in February. Private sector houses rose 15.1%, while private sector dwellings excluding houses increased 45.3%.


Disclaimer
The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.
   
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK