ASX 200 on Wednesday: Top five things to watch out for

Summary

  • The ASX 200 may open 9 points or 0.1% lower on Wednesday morning, according to the latest ASX futures.
  • On Tuesday, the ASX 200 was up 0.9% at 7,379.5 at the close of trade, its highest close ever.
  • The Dow Jones fell 0.27%, the S&P 500 lost 0.20%, and the NASDAQ dipped 0.71% on Tuesday.

The Australian sharemarket is expected to open on a weak note on Wednesday after closing at a record high in the previous trading session. The benchmark ASX 200 may open 9 points or 0.1% lower on Wednesday morning, according to the latest ASX futures. 

On Tuesday, the ASX 200 was up 0.9% at 7,379.5 at the close of trade, its highest close ever.

Meanwhile, the Dow Jones fell 0.27%, the S&P 500 lost 0.20%, and the NASDAQ dipped 0.71% on Tuesday.

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Top five things to watch out for

Key data releases for Wednesday:

Australian calendar - WBC Leading index May; ABS household impacts of COVID-19 survey.

Global calendar - US Federal Reserve’s monetary policy decision; MBA mortgage applications for week ended June 11 and US’ May housing statistics; Japan’s April machinery orders and China’s May retail sales and industrial production figures.

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US Federal Reserve’s meet

Wall Street took a step back on Tuesday, with all three major indices dropping after two posted record highs on Monday ahead of the Federal Reserve’s policy statement today. The global markets, including ASX 200, would be tracking the decision closely for cues going ahead.

According to several economists, the taper announcement would come in the next quarter, despite a patchy recovery in the job market.

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Crude oil prices edge higher

The crude oil prices saw their highest levels since 2019 on Tuesday on the expected surge in demand. Brent crude was up US$1.30, or 1.78%, at US$74.16 a barrel. US crude was last up US$1.41, or 1.99%, at US$72.29 per barrel. The major energy stocks Beach Energy (ASX:BPT) and Santos (ASX:STO) could trade higher on Wednesday.

Gold prices drop

Spot gold prices fell US$7.7966, or 0.42%, to US$1,858.20 an ounce, while US gold futures were down 0.31% at US$1,860.30.  The trades sold the yellow metals ahead of the Fed meeting. The major gold miners such as Northern Star Resources (ASX:NST) and Newcrest Mining (ASX:NCM) could be under pressure on Wednesday.

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Iron ore prices inch higher

The prices of iron ore continued their ascent on Tuesday. The spot iron ore price was up a further 0.5% to US$221.87 a tonne, according to Metal Bulletin.

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