ASX 200 to surge after US stocks closed higher; Newcrest Mining, St Barbara in focus

Highlights

  • The Australian share market may open on a higher note on the last day of the trading week, tracking strong cues from US shares.
  • The ASX 200 may open 29 points or 0.4% higher on Friday morning after closing 0.05% higher at 7,588.2 points on Thursday.
  • On Wall Street, the Dow Jones rose slightly, the S&P 500 climbed 0.3%, and the NASDAQ pushed 0.35% higher.

The Australian share market may open on a higher note on the last day of the trading week, tracking strong cues from US shares, with gold prices expected to boost domestic gold stocks. The ASX 200 may open 29 points or 0.4% higher on Friday morning after closing 0.05% higher at 7,588.2 points on Thursday.

On the other hand, global stocks closed at record highs on Thursday, while the dollar and US Treasury yields inched higher. On Wall Street, the Dow Jones rose slightly, the S&P 500 climbed 0.3%, and the NASDAQ pushed 0.35% higher.

US investors appeared to be of the view that the likelihood of near-term stimulus tapering was diminishing after the release of US inflation data earlier this month despite producer prices registering their largest increase in over ten years.

Source: © Stbernardstudio   | Megapixl.com

Meanwhile in Asia, anxious traders responded fast to remarks from Chinese state media and officials, after many were surprised by latest tougher-than-expected new rules for the private tutoring sector.

READ MORE: Five stocks that have trounced the ASX200 in 2021

Bond yields and dollar

US Treasury yields inched marginally higher, after a 30-year bond auction couldn’t give the market any convincing direction.  Benchmark 10-year notes last fell to 1.3624%, from 1.359% late on Wednesday.

                         

Morning Market Scan: Must Know Cues before ASX opens

 

The US dollar rose after data showed producer prices recorded their largest annual increase in over 12 months through July, implying inflation pressures remain strong.

The dollar index was 0.083% higher at 92.97.

Crude oil prices fall

Crude oil prices declined on Thursday after the International Energy Agency (IEA) raised concerns over the fast spread of the coronavirus Delta variant, which could hurt the recovery of global oil demand.

US crude oil futures closed at US$69.09 per barrel, down 0.2%. Brent crude futures settled at US$71.31 per barrel, down 0.2%.

Energy stocks such as Woodside Petroleum Ltd (ASX: WPL) and Santos Ltd (ASX:STO) could trade lower on Friday.

Gold prices inch higher

Gold prices traded marginally above the key US$1,750 mark after expectations of an early taper by Reserve eased, counterbalancing stronger dollar and yields.

Spot gold was flat at US$1,751.99 an ounce. US gold futures settled 0.1% down at US$1,751.80.

Source: © Robynmac    | Megapixl.com

ASX-listed gold stocks such as St Barbara (ASX:SBM) and Newcrest Mining Ltd (ASX:NCM) could trade higher on Friday.

Metals’ update

Iron ore futures fell on concerns over steel output controls in China.

The most-traded iron ore on China's Dalian Commodity Exchange ended 2.2% lower at 838 yuan (US$129.36) a tonne.

Benchmark nickel prices on the London Metal Exchange (LME) added 1.7% to US$19,705 per tonne by 1554 GMT.

READ MORE: Nasdaq, S&P 500 close higher on tech gains

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