ASX 200 today: Will commodity supercycle keep Australian market higher?

Summary

  • The ASX 200 opened marginally higher on Friday, up just 6.50 points to 7,068.20.

  • The Australian shares are expected to close the week in the green amid positive global sentiment and local mining companies benefiting from the recent rise in iron ore and copper prices.

  • The domestic stock market has advanced 0.60 points in the last five days.    

The ASX 200 opened marginally higher on Friday, up just 6.50 points to 7,068.20. The Australian shares are expected to close the week in green amid positive global sentiment and local mining companies benefitting from the recent rise in iron ore and copper prices. The domestic stock market has advanced 0.60 points in the last five days. It is currently trading down 0.76% of its 52-week high. However, rising tensions with China may cap the gains.

Meanwhile, the major US stock indices settled higher on Thursday. While the Dow Jones climbed 0.9%, the S&P 500 jumped 0.8%, and NASDAQ rose 0.4%.

READ MORE: Commodity Market at Multi-Year Highs, 10 Hot Stocks to look at

Source: © Stbernardstudio   | Megapixl.com

How the market performed in the opening session:

The mining stocks were the top percentage gainers, advancing 1% led by SSR Mining (ASX:SSR), up 7.3%, and Red 5 (ASX:RED) gaining 5.3​%. Iron ore mining giants BHP Group (ASX:BHP) and Rio Tinto (ASX:RIO) added as much as 0.8% and 0.6%, respectively. Banks traded flat, with Omni Bridgeway (ASX:OBL) down 2.82%, and QBE Insurance Group (ASX:QBE) losing 1.81%. Technology stocks were the top percentage loser, shedding as much as 1.4%. Healthcare firms fell more than 1%, with heavyweights CSL Ltd (ASX:CSL) and Resmed Inc (ASX:RMD) declining 1.4% and 2%, respectively.

Australian dollar inches up

Even as the commodity prices have advanced overnight, the Australian dollar, which is a commodities currency, was trading lower by 0.04% to 0.7783. The US dollar index declined 0.337%. The escalating tension with China is expected to be the negative factor for the domestic currency.

               

Australian bond yields

Australia’s 10-year bond yields were trading at 1.636, down 0.49%.

READ MORE: Three ASX gold stocks to mull over in wake of Janet Yellen’s inflation remark

Commodities prices on rise

The commodity prices are on a steady rise. Overnight, the prices of iron ore hit another record high amid increased demand from the Chinese investors. According to S&P Global Platts, its 62% IODEX increased US$9.95 or 5.1% to US$202.65 a tonne. Notably, the AU-China tension is helping fuel the iron ore rally.

Similarly, the prices of aluminum hit the levels last recorded in the year 2018. The copper prices too hovered near the 10-year peak. The shortage of semiconductors and shipping resources and rise in prices of commodities has soared to concerning levels.

Meanwhile, weakness in the US dollar boosted gold prices. The yellow metal is an inflation hedge.

However, the crude oil prices dropped even as stockpiles fell in the US more sharply then expected. Brent crude Futures settled 87 cents lower at US$68.09 a barrel, while WTI crude Futures fell 92 cents to US$64.71 a barrel.

Source: © Paultama   | Megapixl.com

Newsmakers

REA Group Ltd (ASX:REA) on Friday reported strong third-quarter results on the back of improved performance by the Australian Residential business and Move, Inc. The Group saw its Q3 revenue (excluding acquisitions) rising 8% YoY and EBITDA increasing by 13%.

The full-year financial results by Macquarie Group (ASX:MQG) are expected to guide the market today. The Group announced that its net profit for the financial year 2021 stood at AU$3.02 billion, up 10% from the previous year. The assets under management declined 6% to AU$563.5 billion.

Crown Resorts (ASX:CWN) referred to its announcement of 3 May 2021 and announced that casino can restart operations in accordance with the Western Australian Government restrictions.

READ MORE: Three ASX-listed retail shares going great guns in 2021

On the other hand, NZ-based electricity generation and retailing firm Mercury (ASX:MCY) is in news as it has appointed Stewart Hamilton as General Manager Generation.


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