ASX 200 set to open on a strong note amid Wall Street rally

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ASX 200 set to open on a strong note amid Wall Street rally

More on:
ASX, Australian securities exchange
Image source: © Seemitch | Megapixl.com

Highlights:

  • ASX stocks are likely to follow strong cues from the Wall Street
  • As of 7:23 am AEST, ASX futures were up 71 points or 1% to trade at 7182.
  • Overnight, the Dow Jones index on the Wall Street closed 1.3% higher while the S&P500 and the Nasdaq index settled 2.02% and 2.76% higher respectively.

The benchmark Australian equity index, the ASX 200 is, set to open on a strong note on Wednesday tracking gains in the US stocks, which were boosted by strong retail sales and industrial production data.

As of 7:23 am AEST, ASX futures were up 71 points or 1% to trade at 7182. On Tuesday, the Australian benchmark closed 0.3% or 19.5 points higher at 7,112.50 points.

Overnight, the Dow Jones index on the Wall Street closed 1.3% higher while the S&P500 and the Nasdaq index settled 2.02% and 2.76% higher respectively. Metal stocks such as BHP and RIO rallied over 3% each in New York while tech stocks such as Tesla, Amazon and Apple also gained between 2.5-5.1% on the Wall Street. 

Also Read: US stocks rise after strong retail sales data; Citigroup, HD, UAL surge

European shares also closed on a strong note on Tuesday. The Stoxx 50 gained 1.52%, the FTSE 100 index rose 0.72% while the CAC 40 index settled 1.30% higher. 

IT stocks on the ASX are likes to see a pullback today while metal stocks are also expected to extend gains taking cues from their Wall Street peers. Markets will also eye wage price data, which is set to come today. In terms of global influencers Japan’s first quarter GDP data is expected alongside Euro zone’s April CPI numbers. 

Meanwhile, the Australian dollar was rose 0.7%, regaining the US70 cents mark. The USD took a breather as the Bloomberg dollar spot index fell 0.70%.

According to data published by the US Government, retail sales rose 0.9% in April, indicating consumer demand remained strong despite higher inflation and rates. Another report showed factory output rose at a solid pace for a third straight month in April.

The yield on the US 10-year note rose 10 basis points to 2.99% as of 4.59pm in New York. Other bond yields were as follows:

  • 2-year yield: US 2.71% Australia 2.55%
  • 5-year yield: US 2.97% Australia 3.07%
  • 10-year yield: US 2.99% Australia 3.40% Germany 1.04%

The commodities market reflected a mixed picture with oil and gold prices dipping and iron ore standing strong. Here are cues from the commodities market.

Cues from the commodities market

Image Source ©2022 Kalkine Media ®

Meanwhile, Bitcoin gained over 0.4% to regain the US$30,000 to trade at US$30,455 at 7.141am AEST.

Also Read: Bitcoin at $30,000: What does 5-year historical price data indicate?

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