ASX 200 opens higher as Wall Street breaks losing streak; Whitehaven Coal jumps 8%

2 min read | July 18, 2022 10:52 AM AEST | By Bhawna Gupta

ASX 200 opens higher as Wall Street breaks losing streak; Whitehaven Coal jumps 8% — Image source: © Aprescindere | Megapixl.com

Highlights

The benchmark ASX 200 index started the day on a positive note.

The ASX All Ordinaries index also opened in the green, up 0.37% at 6,823.1.

Major Wall Street indices broke their five-day losing streak on Friday following strong corporate earnings from banks.

Following a great week for US and European equities, Australian shares began the new week in the green. The key ASX 200 index was up 0.62%, or 41 points, after 15 minutes of trading on Monday, reaching 6,644.30 points. The index is down 10.71% year to date (YTD), despite having gained 0.69% during the previous five days.

The ASX All Ordinaries index also opened in the green, up 0.37% to 6,823.1 at 10.05 AM AEST, while the volatility index--A-VIX-- was down 8.22% at 24.23 at the same time. On Friday, the ASX 200 ended 0.68% lower at 6,605.60 points.

Global equity indices

US equities ended a five-session losing streak on Friday as retail sales and consumer sentiment data topped forecasts and Q2 corporate results season, which was not good so far, took a positive turn. Fed representatives also continued to downplay the possibility of a 100 basis points rate increase next week.

Dow Jones rose 2.15%, S&P 500 increased 1.92%, while the tech-heavy NASDAQ jumped 1.79%.

In Europe, the Stoxx 50 gained 2.37%, the FTSE 100 rose 1.69%, the CAC 40 gained 2.04%, and the DAX ended 2.76% higher.

Top ASX gainers and losers

Gains in the market were led by energy, materials and financial stocks with energy being the top performing index with nearly 2% gains. On the other hand defensive stocks like healthcare, utilities and consumer staples witnessed profit booking.

Whitehaven Coal (ASX:WHC) was the top gainer on the ASX, up nearly 8% after the mining company said that its full year earnings may jump to $3 billion. Liontown Resources (ASX:LTR) and Suncorp Group (ASX:SUN) followed WHC with gains of over 5% each.

The top losers on ASX were Appen Ltd. (ASX:APX), Polynovo Ltd. (ASX:PNV), down 2.16% and 1.75% respectively.

Newsmakers

In a bid by both banks to maintain government support, ANZ Bank said that it will raise AU$3.5 billion in new capital to finance its AU$4.9 billion acquisition of Suncorp Bank and promised to keep its branches operational for three years.

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