- The Australian shares may open on a weak note after US peers closed lower overnight.
- The Australian sharemarket may open the day lower by 1.05%, according to the latest SPI Futures.
- The Dow Jones fell 0.8%, the S&P 500 dropped 0.85% and the NASDAQ dipped 0.55% overnight.
The ASX 200 is expected to open on a weak note on Wednesday after rising for the third straight session yesterday. The Australian sharemarket may open the day lower by 1.05%, according to the latest SPI Futures, tracking weak cues from US stock market which closed lower overnight as investors weighed the rush to reopen the economy against inflationary pressure from a rise in commodity prices.
On Tuesday, the ASX 200 index ended 0.6% higher at 7,066.
Meanwhile, the Dow Jones fell 0.8%, the S&P 500 dropped 0.85% and the NASDAQ dipped 0.55% overnight.
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Source: © Shimanovichs | Megapixl.com
Wage price index data
The Australian Bureau of Statistics will release its first quarter wage price index data. Wage growth is currently running at just 1.4%, compared with 2% in Europe and nearly 3% for the United States. Westpac Consumer Confidence data for May will also be out on Wednesday. The data is expected to guide the domestic stock market through the day. Investors may also closely scan the Markit manufacturing and services PMI Flash on Wednesday.
RBA monetary policy minutes
The domestic market is expected to further scan the minutes from the Reserve Bank of Australia’s (RBA) latest monetary policy meeting to take hints on further easing of rates, even as Statement of Monetary Policy, which was released just after the meeting earlier this month, shared most of the details about the meeting.
According to experts, the Australian dollar may be more impacted by the wage price index data and Thursday’s employment data.
Meanwhile, the RBA had kept official rates unchanged in its last outing.
US Federal Reserve’s monetary policy meet
On Wednesday, US Federal Reserve will release its minutes from the latest monetary policy meeting. The US investors are expected to closely track the minutes to take more hints over the interest rate trajectory. The latest rise in inflation along with fall in retail sales have raised concerns in US.
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Gold prices rise, crude oil prices fall
The gold prices closed in on a four-year high due to weakness in US dollar and fall in Treasury yields. The spot gold price was up 0.1% to US$1,869.40 an ounce. Northern Star Resources Ltd (ASX:NST), Newcrest Mining Ltd (ASX:NCM), among others would be in focus.
The crude oil prices fell after hitting two-month highs. While the WTI crude oil price was down 1.2% to US$65.49 a barrel, the Brent crude oil price has fallen 1.05% to US$68.74 a barrel. Energy stocks such as Beach Energy (ASX:BPT), Woodside Petroleum Ltd (ASX:WPL), among others would be closely tracked.
Source: © Ymgerman | Megapixl.com
Webjet full year earnings
The online travel agent Webjet Ltd (ASX:WEB) will be releasing its full-year financial results today. The company has shifted its financial year to end on 31 March. According to experts, the company would be reporting loss in the given period due to challenges posed by COVID-19 headwinds.
Meanwhile, Japan will be releasing its March final industrial production today. The UK will also release the CPI data for April today.