ASX 200 on Wednesday: Top 5 things to watch out

Summary

  • 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.

Top 5 things to know:

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.

                 

Is inflation anxiety fanning the ASX 200 slump?
 

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.

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

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.

READ MORE: 5 ASX Stocks with Yield Over 5%

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.

READ MORE: Which are the ten best-suitable countries for renewable energy investment?

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.

READ MORE: Solar Energy In Australia- Where Are The Pockets Of Opportunities?

Meanwhile, Japan will be releasing its March final industrial production today. The UK will also release the CPI data for April today.

READ MORE: Three ASX Small-Cap Stocks Flying High In May

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