- 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%.
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.
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
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%.