ASX 200 to open lower; A2 Milk’s profit falls 79%

Highlights

  • Despite Wall Street closing on a positive note, the Australian share market is expected to open lower on Thursday.
  • The Australian benchmark index ASX 200 may start the day 13 points or 0.2% lower.
  • The Dow Jones rose 0.1%, the S&P 500 climbed 0.2%, and the NASDAQ jumped 0.15%.

Despite Wall Street closing on a positive note, the Australian share market is expected to open lower on Thursday. The Australian benchmark index ASX 200 may start the day 13 points or 0.2% lower. On Wednesday, the index closed 0.4% higher at 7,531.9 points.

Top things to know before the ASX Opening Bell

Meanwhile, A2 Milk reported a 79% profit gall in the financial year 2021 financial year due to sluggish demand from China. The revenue was down 30.3%.

On Wall Street, financials, industrials, communications, and the consumer discretionary sector lifted the three major indices higher overnight. The Dow Jones rose 0.1%, the S&P 500 climbed 0.2%, and the NASDAQ jumped 0.15%.

Source: © Rawpixelimages    | Megapixl.com

Market sentiment also improved after the top US health official Dr Anthony Fauci said that coronavirus could be under control by early 2022.

On Friday, US Federal Reserve Chair Jerome Powell is expected to talk about tapering the Federal Reserve’s bond-buying program at the Jackson Hole symposium.

RELATED TOPIC: US markets extend gains as tech, financial stocks rise

Bond yields and dollar

Ahead of Powell’s speech, the US Treasury yields jumped to the highest in nearly two weeks. Benchmark 10-year yields rose to 1.339%.

On the other hand, dollar index fell 0.081% to 92.834.

Source: © Bulus   | Megapixl.com

Crude oil prices rise

Crude oil prices surged over 1% on Wednesday after US government’s data revealed that fuel demand reached its highest level since the pandemic started.

While Brent crude rose 1.7% to US$72.25 a barrel, WTI rose 1.2% to US$68.36 a barrel.

The major energy stocks such as Woodside Petroleum Ltd (ASX:WPL) and Santos Ltd (ASX:STO) could trade higher on Thursday.

Gold prices slip

The prices of yellow metal fell more than 1% as investors eyed the Jackson Hole symposium.

Spot gold fell 0.6% to US$1,792.06 per ounce. Gold futures settled down 1% at US$1,791 an ounce.

Gold miners including Northern Star Resources Ltd (ASX:NST)  and Newcrest Mining Ltd (ASX:NCM) could trade lower on Thursday.

Meanwhile, benchmark copper on London Metal Exchange (LME) was down 0.1% at US$9,369 a tonne at 1611 GMT.

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