- Day after scaling a record high level, the ASX 200 on Thursday again opened higher.
- The investors were upbeat on strong GDP data.
- On Wednesday, the benchmark Australian index ended 1.05% higher at 7,217.80.
The Australian shares opened marginally higher on Thursday, with the benchmark ASX 200 rising by 3.90 points to 7221.70. The domestic market is expected to gain in the intra-day trade after scaling a record high in the previous session, following an upbeat GDP data, even as benchmark US stock indices recorded subdued gains overnight due to a recent spike in crude oil prices and inflation.
The investors would be eyeing trade sales and retail data to pick up cues going ahead. On Wednesday, the benchmark Australian index ended 1.05% higher at 7,217.80.
Meanwhile, the Dow Jones surged 0.1%, the S&P 500 climbed 0.15%, and the tech-heavy NASDAQ settled 0.15% higher.
Source: © Stbernardstudio | Megapixl.com
What happened so far
By 11 AM (AEST), the ASX 200 was trading 0.66% higher at 7,265.50. The higher commodity prices lifted the resource-heavy benchmark index.
Financial stocks followed suit, rising 0.7%, with the "big four" banks gaining between 0.7% and 1%.
Miners added 0.7% to hit their highest in two weeks. Tech stocks tracked NASDAQ higher to rise 0.5%. Gold stocks advanced 0.8% as bullion inched up.
Source: ASX website; as of 11 AM (AEST)
How did the Australian dollar and bond yields move?
The Australian dollar was trading higher by 0.09% at 0.7751, at the time of writing. The US dollar futures index slightly rose by 0.09% to US$89.900 overnight.
The 10-year Australian bond yield was trading down 2.19 at 1.605, at the time of writing. The 30-year US Treasury bond yields were down 0.93% to 2.275, while the 10-year bond yields decreased 1.60% to 1.589.
The crude oil prices surged higher, and the brent oil futures increased 1.42% US$71.25 per barrel while the WTI crude was up 1.54% to US$68.76. The oil prices hit their highest levels in over a year on the decision by OPEC + to gradually restore supply.
At the time of writing, the crude oil WTI futures were trading 0.03% higher at US$68.85.
The gold prices gained overnight after the US bond yields eased. Gold futures were up 0.31% to US$1,910.95 per ounce. At the time of writing, gold futures were trading 0.05% higher at US$1,910.85.
Silver was trading 0.40% higher at US$28.320 per ounce.
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Source: © Djbobus | Megapixl.com
On Wednesday, a strong trend in the spot market led prices for steelmaking raw materials on China's Dalian Commodity Exchange (DCE) to increase to cope up with the prices in the physical market. The most actively traded iron ore futures on the DCE, for September month delivery, closed 2.8% up, at 1,169 yuan (US$182.95) per tonne.
Copper prices softened on Wednesday as firmer dollar dented the metal's appeal. Benchmark copper on the London Metal Exchange (LME) fell 1.2% to US$10,124 per tonne by 1600 GMT.
Wesfarmers (ASX:WES) said that its retail businesses were witnessing robust growth in sales, even as it has now begun to cycle the impact of COVID-19 from the previous year.
Galaxy Resources (ASX:GXY) has upgraded its production guidance for the full year. The miner has shipped 33,500 wet metric tonnes in May and pricing for the third quarter scheduled shipment was expected to surpass US$750 per tonne.
Mesoblast’s (ASX:MSB) revenue fell in the first quarter from the previous year, down 84.3% to US$1.92 million. The result was mainly on account of lack of milestone revenue.
PainChek Ltd (ASX:PCK) said that it has reached 127,000 licensed Australian Residential Aged Care approved beds.
Sezzle Inc (ASX:SZL) said that it has entered into a three-year agreement with US-based retailer Target Corporation following the conclusion of its proof of concept.