ASX 200 to open lower; Gold makes a new nine month low

Source: Shutterstock

Summary

  • ASX 200 is set to open mildly lower by 9 points or 0.1 per cent.
  • CBOE VIX has risen for the third straight session, increasing by 6.41 per cent to 28.38.
  • Crude oil makes a new 13-month high as OPEC, and its allies have agreed to extend the production cut into April 2021.

On the last day of the week, ASX 200 is looking to continue its downtrend trend. On Friday, ASX 200 is set to open mildly lower by 9 points or 0.1 per cent. However, even with today’s negative session, the markets could still register a positive week as ASX 200 is still up by 1.3 per cent for the week, as of Thursday.

Source: Pixabay

(Reuters) Wall Street also closed lower on Thursday with the global markets as Fed Chair Jerome Powell repeated his pledge to keep credit flowing until Americans are back to work. The Dow Jones closed the session 1.1 per cent lower at 30,924.1 while S&P 500 took a hit of 1.34 per cent. Nasdaq has lost a decent 2.11 per cent as tech shares continue to get ditched by the investors.

As the market has fallen, CBOE VIX has risen for the third straight session, increasing by 6.41 per cent to 28.38. The ASX 200 VIX index decreased by 1.34 per cent in the last trading session.

Source: Pixabay

The Australian dollar continues to face selling pressure for the second day and has fallen by 0.65 per cent to 0.7723. The currency investors continued to snap up the dollar on the back of a positive economic outlook, leading to a rise of 0.54 per cent in the Dollar index.

Bitcoin has followed the trajectory of the global markets, which is down by 4.21 per cent to US$48,240.  

Read More: US Stocks End Lower Amid Recovery Woes, Mortgage Rate Spike

Crude oil trades higher

Crude oil has seen a sharp increase in its price as OPEC and its allies have agreed to extend the production cut into April 2021. The OPEC members believe that the demand outlook is still fragile due to the pandemic situation.

Source: Pixabay

U.S. crude oil recently notched up by 4.57% to US$64.08 a barrel, and Brent crude was at US$67.00 a barrel, up 4.57% on the day.

Energy producers such as Santos Limited (ASX:STO) and Beach Energy Limited (ASX:BPT) could outperform the markets today.

Gold price continued its fall

Gold slumped to a new nine-month low, pressured by the gains in the dollar index and U.S. treasury yields after fed indicates no signal to immediately address the rising bond yields. U.S. gold futures settled down by 0.9 per cent to US$1700.7 an ounce.

Gold miners such as Resolute Mining Limited (ASX:RSG) could again take a backseat for the day.

Tech stocks slumped

The sell-off in the “work from home” theme has continued yesterday as well. The positive outlook on the economy, coupled with an upcoming stimulus package, is making investors dump these technology shares.

The sell-off wave in the U.S. is expected to make its mark in the Australian markets as well, and tech stocks like Afterpay Limited (ASX:APT) and Xero Limited (ASX:XRO) could spoil the mood of the investors.

 

 


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