ASX 200 to rise as investors eye earnings season; BlueScope, TPG to pay dividends today

Highlights

  • Australian shares are expected to rebound on Wednesday despite all major indices on Wall Street slipping into the red overnight.
  • The ASX is likely to open the day 20 points or 0.3% higher after falling 0.25% to 7,280.7 points in the previous session.
  • On Wall Street, the Dow Jones was down 0.3%, the S&P 500 fell 0.2%, and the NASDAQ traded 0.1% lower.

The Australian shares are expected to rebound on Wednesday despite all major indices on Wall Street slipping into the red overnight. According to the latest ASX futures, the ASX is likely to open the day 20 points or 0.3% higher after falling 0.25% to 7,280.7 points in the previous session.

The domestic shares are expected to rise, likely helped by gains in domestic gold stocks on the back of firm bullion prices.

ASX falls at open; IMF downgrades GDP

A number of ASX-listed companies would be paying their latest dividends to shareholders on Wednesday. BlueScope Steel Ltd, News Corporation, and TPG Telecom Ltd are a few companies to pay dividends. In addition, Bank of Queensland will be announcing its financial results for FY2021.

On Wall Street, the Dow Jones was down 0.3%, the S&P 500 fell 0.2%, and the NASDAQ traded 0.1% lower.

Image Source: @Kalkine Media

Bond yields and dollar

Benchmark bond yields surged in anticipation of tighter monetary conditions amid expectations that central banks may rein in ultra-loose policies due to rising inflation concerns.

  • Two-year US Treasury yields jumped to 0.3419%, a level last seen in March 2020.
  • Benchmark 10-year yields retreated to 1.5751%, from 1.605% late on Friday.

The dollar index stayed at one-year highs and stood near a three-year peak against the yen.

  • The dollar index rose 0.149%, and a stronger dollar nudged the euro down 0.27% to US$1.1526.
  • The Japanese yen weakened 0.31% versus the greenback to 113.62 per dollar.

Oil prices mixed

Oil prices remained mixed as traders seemed to have taken profit after some gains.

  • WTI was little changed at US$80.50 per barrel.
  • Brent crude rose above US$84 a barrel briefly before shedding 0.5% at US$83.27.

Gold prices inch higher

  • Gold rose on Tuesday despite dollar strength.
  • Spot gold added 0.3% to US$1,759.85 an ounce. US gold futures gained 0.34% to US$1,760.60 an ounce.

Meanwhile, with businesses hit by persistent supply chain disruptions and inflation pressures, the International Monetary Fund warned on Tuesday that the global economy's recovery from the COVID-19 pandemic is being constrained and cut growth outlooks for the United States and other major industrial powers.

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