ASX 200 today:  Miners jump ahead of Reserve Bank of Australia’s meet

Summary

  • The Australian shares traded higher in the early session on Tuesday ahead of the Reserve Bank of Australia (RBA) meet, supported by miners.

  • The ASX 200 gained 12.70 points or 0.18% to 7,041.50 in the opening trade.

  • The Australian dollar was trading down 0.11% to 0.7749. 

     

 

The Australian equity benchmark ASX 200 on Tuesday opened higher ahead of the Reserve Bank of Australia (RBA) meet scheduled later in the day. According to the economists, the RBA is expected to maintain the cash rate at 0.1% and continue with quantitative easing.

The ASX 200 gained 12.70 points or 0.18% to 7,041.50 in the opening trade. The local equity index is also expected to gain strength from close opening of Dow Jones and S&P 500. However, tech stock may remain under pressure due to weak NASDAQ closing. The Dow Jones closed the session 0.7% up, at 34,113.2 which is the second highest closing yet. The S&P 500 was also up 0.27%, to 4,192.7 while the NASDAQ lost 0.48% to 13,895.13, closing near the low of the day.

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Over the last five days, the index is virtually unchanged, but was currently 0.78% below its 52-week high.

Source: © Ymgerman   | Megapixl.com

Gainers and losers

Australian shares traded higher boosted by gains from iron ore miners. Heavyweight miners were the top boosts to the benchmark, jumping as much as 2%, with iron ore giants BHP Group (ASX:BHP)and Rio Tinto (ASX:RIO) advancing 2.2% and 1.8%, respectively. Among gold miners De Grey Mining (ASX:DEG) and Pantoro (ASX:PNR) were the top gainers, soaring 8.6% and 4.9%​, respectively.

Energy index rose 1.5%. Among losers, technology stocks fell 0.78% after the tech-heavy NASDAQ Composite dropped half a percent overnight due to losses in blue-chip tech companies.

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Banking stocks were down 0.3%, with Bank of Queensland (ASX:BOQ) and Bendigo and Adelaide Bank (ASX:BEN) leading the declines. Three of the "Big Four" banks traded in red, while Westpac Banking Corp (ASX:WBC) jumped as much as 0.7%.

Bond yields soften

The 10-year Australian bond yield fell 1% to 1.684. The yield on the 10-year US Treasury note traded 2.3 basis points lower at 1.6082%.

Australian dollar falls

The Australian dollar was trading down 0.11% to 0.7749. The US dollar index fell 0.335%. The Australian dollar is a commodities currency. Since Australia's economy is so heavily reliant on commodities, its currency’s price is more closely linked to the price of commodities.

Gold prices ease

The gold prices surged on Monday, owing to weakness in bond yield and US dollar. The yield on the 10-year US Treasury note traded 2.3 basis points lower at 1.6082%. Spot gold prices rose 1.40% to US$1,793.42 an ounce, while the US gold Futures settled 1.4% higher at US$1,791.80 an ounce.

Source: © Sadeq68 | Megapixl.com

Crude oil prices edge higher

The crude oil soared over 1% amid recovery in demand in US and China. Brent crude Futures closed higher by 80 cents at US$67.56 a barrel, while the WTI crude Futures rose 91 cents to settle at US$64.49 a barrel. Oil stocks such as Santos Ltd (ASX:STO), Woodside Petroleum Ltd (ASX:WPL) and Beach Energy Ltd (ASX:BPT) could be closely tracked.

Bitcoin trades lower

Bitcoin traded lower by nearly 2% to US$56,667.67.  Meanwhile, the other major cryptocurrency Ether reached the US$3,000 milestone on Monday.

Newsmakers

Infomedia Ltd (ASX:IFM) announced that it had acquired US-based e-commerce platform SimplePart for an upfront consideration of US$S24.5 million along with an earn-out of up to US$20.5 million over three years.

Ramsay’s (ASX:RHC) Wholly Owned Funding Group has been ascribed an investment grade credit rating of BBB (Stable) by credit rating agency Fitch.

Nick Scali (ASX:NCK) said that it expected 90% profit rise in FY21, with sales remaining robust through the March quarter.

Super Retail Group (ASX:SUL) said that its sales growth has remained strong through the first 44 weeks of the financial year 2021.

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Wisetech Global (ASX:WTC) has matched the guidance issued at its first-half earnings result. It had anticipated A$470 million to A$510 million in revenue and A$165 million to A$190 million in EBITDA for financial year 2021.

Flight Centre (ASX:FLT) said that its March sales revenue was comfortably higher than the previous coronavirus period record. The March turnover was over A$100 million, or 32.7%, higher than February.

Domain Group’s (ASX:DHG) revenue grew 2% in the March quarter, owing to expansion in listings as Australia’s property market gained strength.

READ MORE: RBA Monetary Policy: What market expects from the central bank

In an update to the Macquarie Australia conference, Worley (ASX:WOR) said that it is on track for an improved result in the second half compared to the first half of 2020-21.


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