ASX 200 shows sign of resistance as Wall Street closes lower

Summary

  • As of 10:30 AM AEST, the ASX 200 is trading almost flat at 7,429.6, with a loss of mere 1.8 points.
  • US stocks closed Tuesday’s session with a decent selling pressure across the board.
  • The market breadth is somewhat mixed today, with 6 out of the 11 sectors trading in the red.

Australian shares opened with a slight downtick on Wednesday, despite their Wall Street peers closing in negative amidst investor caution around economic growth concerns and the Federal Reserve announcement, which is due to be out later in the day.

On Wednesday, the benchmark ASX 200 index has been seen facing some resistance after it marked a new all-time high on Tuesday.  The index opened almost unchanged, with a minor downtick of 5.8 points or a mere 0.1% loss.

 Image Source: Copyright © 2021 Kalkine Media

US stocks closed Tuesday’s session with a decent selling pressure across the board, as investors stayed cautious ahead of corporate earnings from top tech and internet giants and Wednesday's Fed announcement.

On Tuesday, the Dow Jones lost 0.24% to 35,058.52, while the S&P 500 was down 0.47% to 4,401.7. The NASDAQ Composite fell the most, a 1.21% drop, to 14,660.58.

Read More: ASX 200: What to expect as Fed meet, Chinese sell-off weigh on US shares

How has the market performed so far?

As of 10:30 AM AEST, the ASX 200 is trading almost flat at 7,429.6, with a loss of mere 1.8 points. Despite today’s laggard performance, the benchmark index is up over 1.65% in the last five days. The ASX All Ordinaries Index is also trading 0.1% or 3.4 points down, at 7,700.6.

The A-VIX, has gained a bit in today’s session. The index is up 0.11 points or 0.93% to 11.65. Over the last five days, the volatility index is down 4.76%.

Data Source: ASX Website (28 July 2021, as of 10:30 AM AEST)

The market breadth is somewhat mixed today, with 6 out of the 11 sectors trading in the red. As expected, looking at the NASDAQ 100, the IT index has fallen the most in Australia with a cut of 0.64% in the opening session, followed by the Mining sector, losing 0.35%. The consumer discretionary index is the strongest sector today, holding its ground with a 0.11% gain.

                       

The Early Trades || Will ASX 200 Recoup Early Trade Losses Ahead Of US Fed Meet?

  

The top gainers supporting the index are Eagers Automotive Limited (ASX:APE) and Ingenia Communities Group (ASX:INA), gaining 3.56% and 3.22%, respectively. Other stocks that are dragging the index are Lynas Rare Earths Limited (ASX:LYC) and BNPL giant Afterpay Limited (ASX:APT), both losing 3.85% and 2.63%, respectively.

Newsmaker

Life360 Inc (ASX:360) has clocked a record annualised monthly revenue of US$100 million for the quarter ended June 2021. The company reported a cash balance of US$50.8 million at the end of the June 2021 quarter with a 15% increase in the monthly active users to 32.3 million.

Rio Tinto Limited (ASX:RIO) faces an investigation by the Financial Court Authority in the UK for an alleged breach of listing rules regarding the disclosure of the value of its Oyu Tolgoi copper mine in Mongolia.

Image Source: Copyright © 2021 Kalkine Media

Cashrewards Limited (ASX:CRW) has incurred an operating loss of AU$15.05 million for the financial year ended 30 June 2021. The cash on hand at the end of the same period stood at AU$26.1 million on the back of a AU$50.5 capital raising.

Australian gold miner Independence Group Limited (ASX:IGO) has posted a net profit of AU$453 million for the June 2021 quarter, including the proceeds of AU$385 million, received from the sale of its Tropicana mine. The underlying EBITDA for the same period stood at AU$149 million.

Select Harvests Limited (ASX:SHV) expects its crop volume for almond to be higher in FY21 over FY20, also accompanied by an increase in the price. It is now looking forward to a strong FY22, supported by the benefits of Piangil Almond Orchard acquisition.         

Read More: Planning to invest? Keep track of these economic indicators

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