ASX 200 today: What to expect after US stocks rise as jobless claims fall

Summary

  • The Australian share market may end the last day of the trading week flat, pulled down by miners.
  • According to the latest ASX futures, the benchmark index ASX 200 is expected to open marginally up 0.04% on Friday.
  • On Wall Street, the Dow Jones rose 0.8%, the S&P 500 climbed 0.6%, and the NASDAQ stormed 0.8% higher.

The Australian share market may end the last day of the trading week flat, pulled down by miners due to falling iron ore prices despite strong closing by US peers overnight.

According to the latest ASX futures, the benchmark index ASX 200 is expected to open marginally up 0.04% on Friday, after closing at a record high in the previous session at 7,511.1.

On Wall Street, the Dow Jones rose 0.8%, the S&P 500 climbed 0.6%, and the NASDAQ stormed 0.8% higher. On Thursday, US equities traded higher as jobless claims dropped. While fresh unemployment claims fell further last week, layoffs dipped in July to their lowest level in just over two decades.

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The US trade deficit widened to record high level in June. Buoyed by the transition in spending from goods to services, a measure of US services industry activity climbed to an all-time high last month.

The market would also await a key indicator scheduled to be released on Friday with the US non-farm payrolls report.

Source: © Joingate | Megapixl.com

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Bond yields and dollar

Following Federal Reserve Vice Chair Richard Clarida’s hawkish remarks, the US dollar took a breather on Thursday as investors awaited new direction from Friday’s employment data. As a result, the dollar index was down 0.03% to 92.249 in the afternoon trade.

On the other hand, US Treasury yields surged as risk sentiment improved after the positive unemployment claims report. Benchmark 10-year notes last traded up 1.2235%.

Crude oil prices rise

Crude oil prices edged higher over 1% overnight amid rising tensions in the Middle East.

Brent crude oil futures rose1.3%, to settle at US $71.29 a barrel, while Texas Intermediate (WTI) crude futures climbed 1.4%, to settle at US $69.09 a barrel.

Major energy stocks including Woodside Petroleum Ltd (ASX: WPL)  and Santos Ltd (ASX:STO) could trade higher on Friday.

Gold prices climb

The prices of gold inched higher due to weakness in the US dollar. However, the gains remained in check ahead of US employment data scheduled to be released later. US gold futures were up 0.2% to US$1,817.50.

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

Source: © Outline205   | Megapixl.com

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Metals’ update

Following muted consumption in China on steel production controls, Chinese iron ore futures ended down nearly 5%.

The most active iron ore futures on the Dalian Commodity Exchange, for September delivery, ended down 4.8% at 1,007 yuan.

On the London Metal Exchange, the benchmark copper traded up 0.3% at US$9,492.50 a tonne at 1600 GMT.

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