ASX 200 surges higher as Wall Street makes a record high closing

Summary

  • At the open, the Australian benchmark index, the ASX 200 is trading 15.20 points higher or 0.21% up at 7,409.50.
  • Due to robust commodity prices, the Materials sector is again leading the market for the day with a gain of 1.15%.
  • OZ Minerals clocked a 22% increase in copper production in the June 2021 quarter.

Australian shares have opened higher on Tuesday, supported by robust copper and iron ore prices which have also driven the country's mining index higher. However, the rising coronavirus cases is likely to weigh on risk appetite.

At the open, the Australian benchmark index, ASX 200, is trading 15.20 points or 0.21% up at 7,409.50, hovering near its all-time high of 7,417.6.

Image Source: Copyright © 2021 Kalkine Media

US stocks marked a new all-time high in choppy trade on Monday while the US dollar weakened, as investors avoided taking new and risky positions before this week's Fed’s policy meeting, which might offer clues on the monetary policy outlook.

On Monday, the Dow Jones rose 0.24% to 35,144.32, while the S&P 500 was up 0.24% at 4,422.31. The NASDAQ Composite traded almost flat, with a minor uptick of 0.03% at 14,840.71.

Read More: Wall Street stocks end flat ahead of big tech earnings week

How has the market performed so far?

As of 10:30 AM AEST, the ASX 200 has climbed further, marking a record high of 7,426.7. It is the fourth green day for the index in the last five sessions. The ASX All Ordinaries Index is also up 0.32%, setting a new all-time high at 7,695.4.

Due to robust commodity prices, the Materials sector is again leading the market for the day with a gain of 1.15%, followed by the Real Estate sector (A-REIT), gaining 0.4%. The top contributing shares to the ASX 200 rally are from the Materials sector – OZ Minerals Limited and BlueScope Steel Limited, gaining 8.58% and 5.14%, respectively.

Data Source: ASX Website (27 July 2021, as of 10:30 AM AEST)

The worst performing index for the day is the Information Technology Index, having shed 0.22%. The top-most index draggers for the day are The a2 Milk Company Limited and Zero Limited, losing 3.14% and 2.94%, respectively. The Australian VIX index is down 2.89%, to 11.7.

Read More: What happens when the RBA alters its interest rates?

Newsmakers

IGO Limited (ASX:IGO) has entered into an agreement to acquire 100% stake in the Sliver Knight nickel-copper-cobalt sulphide deposit for a total consideration of AU$45 million. The company would be forming a Joint Venture with Creasy Group over a portfolio of exploration tenements.

OZ Minerals Limited (ASX:OZL) clocked a 22% increase in copper production in the June 2021 quarter, putting the company on track to achieve its output targets for FY21. It also posted a cash balance of AU$134 million with no debt.

Image Source: Copyright © 2021 Kalkine Media

BlueScope Steel Limited (ASX:BSL) is all set to beat its earnings guidance, recording an unaudited EBIT of AU$1.72 billion for FY21, on the back of a record AU$1.19 billion EBIT contribution in 1H FY21. The company also realised a stronger demand in Australia and New Zealand markets.

Rio Tinto Limited (ASX:RIO) has decided to cut aluminum production from the BC Works smelter in Kitimat, Canada, as the company failed to agree on a new collective labour agreement with a local union. The annual production will fall to 35% of the current 432K tonnes capacity.

                     

The Opening Bell || Will Materials Sector Continue To Pull The Strings Of ASX 200

 

Temple & Webster Group Limited (ASX:TPW) has posted a record FY21 EBITDA of AU$20.5 million, a jump of a massive 141% over the previous year. The sales also moved 85% higher to AU$326.3 million. The revenue per customer has also increased by 12%.        

Read More: Why is deflation more dangerous than inflation?

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