ASX 200 today: What to expect from market ahead of US inflation data

Summary

  • The ASX 200 opened marginally lower, down 4.60 points at 7,265.60, after subdued overnight trade on Wall Street.
  • However, shares soon rebounded and by 10:30 AM (AEST), the ASX 200 was trading at 7,290.20, up 0.20%.
  • The domestic benchmark closed 0.3% lower on Wednesday at 7,270.20.

Extending the losses on Thursday, the benchmark ASX 200 opened marginally lower, down 4.60 points to 7,265.60, after subdued overnight trade on Wall Street. The US investors are awaiting data on inflation and job claims tonight.

However, shares soon rebounded. By 10:30 AM (AEST), the ASX 200 was trading at 7,290.20, up 0.20%.

The domestic benchmark closed 0.3% lower on Wednesday at 7,270.2.

Meanwhile, the Dow Jones fell 0.4%, the S&P 500 dropped 0.2%, and the NASDAQ slipped 0.1% lower in the overnight trade.

READ MORE: Three ASX shares having high-growth prospects

Source: ©Ymgerman    | Megapixl.com

How has the market moved so far?

Over the last five days, the index has gained 0.44% and is currently 0.58% off its 52-week high.  The healthcare sector, up 1.6%, has been driving the gains. The shares of PolyNovo, ResMed Inc, and CSL were up 3.5%, 3.3% and 1.6%, respectively.

Energy shares fell this morning following the weakness in oil prices overnight. Oil Search and Santos were trading 1.5% and 1.2% lower, respectively.

Real Estate and Information Technology were up over 1%. Communication Services was also up 0.7%. Financials, Materials, Resources and Metals & Mining were down.

De Grey Mining, and Northern Star Resources were up over 1%.

The broader All Ordinaries index was up 0.266%, while the ASX 200 VIX Index was down 9.404%.

Source: ASX website; as of 10:30 AM (AEST)

Dollar and bond yields

The commodity price-sensitive Australian dollar was trading 0.04% lower, at 0.7726. The dollar index last traded 0.03% up, at 90.14.

The 10-year Australian bond yields were trading 3.86% lower, at 1.469. The yield on the benchmark 10-year US Treasury note fell 3.7 basis points to 1.4908%, compared to 1.528% on Tuesday. The yields fell below 1.5% for the first time since 7 May 2021.

READ MORE: Joblessness in Australia down to pre-pandemic levels

Commodities sector

Crude oil prices closed almost unchanged on Wednesday after the US inventory data revealed a surge in gasoline inventories due to weak fuel demand. Brent crude futures remained unchanged and closed at US$72.22 a barrel, while WTI crude futures fell 9 cents to US$69.96 a barrel.

                     

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The WTI crude futures were trading 0.40% lower, at US$69.68.

The prices of the yellow metal remained under pressure as traders appeared nervous ahead of the released of the critical US inflation data tonight. The US gold futures closed 0.1% up at US$1,895.50.

The gold futures were trading 0.34% lower, at 1,889.

Metals’ update

On Wednesday, iron ore futures ticked up after a 3-day fall, as worries over supply boosted the prices of the steelmaking raw material. The most active September iron ore futures contract on China's Dalian Commodity Exchange closed 4% up, at 1,175 yuan (US$183.78) per tonne.

On Wednesday, copper prices traded below US$10,000 per tonne as Chinese factories in May witnessed the fastest rise in the cost of input materials in 12 years. The benchmark copper futures contract on the London Metal Exchange (LME) was up US$3.50, at US$9,967.50 per tonne at 1625 GMT.

The copper futures were trading 0.18% higher, at US$4.5243.

Newsmakers

Lynch Group Holdings Ltd (ASX:LGL) has increased its FY21 guidance on the back of strong demand across Australia and China.

Boral (ASX:BLD) has said that its board continues to urge its shareholders to reject Seven Group’s takeover offer.

PointsBet Holdings (ASX:PBH) said that it has signed an agreement with The Riverboat on-the-Potomac to provide online and retail sports wagering in Maryland.

Oneview Healthcare PLC (ASX:ONE) has signed a 5-year contract extension with Epworth Healthcare, the largest private health service in Victoria.

Newcrest Mining (ASX:NCM) said that Red Chris drilling continues to expand the higher-grade mineralisation intersected at East Ridge and in the main zone of the project.

READ MORE: What China’s record factory-gate prices mean for global economy


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