ASX 200 today: Will tech stocks continue to lift market sentiment despite weak Wall Street?

Summary

  • The ASX 200 opened in negative territory on Friday after US stocks ended mixed overnight as investors weighed new guidance by the Federal Reserve.
  • However, the market soon recovered, boosted by tech stocks.
  • On Wall Street, the Dow Jones fell 0.6%, the S&P 500 edged lower, and NASDAQ stormed 0.9% higher.

The ASX 200 opened in negative territory on Friday, down 11.80 points or 0.16% at 7,347.20, after US stocks ended mixed overnight as investors weighed new guidance by Federal Reserve.

However, the market soon recovered and by 10:30 AM (AEST), the ASX 200 was trading 0.18% higher, at 7,372.50, boosted by tech stocks.

On Thursday, the Australian shares closed lower on Thursday, led by a fall in mining and energy stocks. The benchmark ended 0.37% lower, at 7,359.

On Wall Street, the Dow Jones fell 0.6%, the S&P 500 edged lower, and the NASDAQ stormed 0.9% higher overnight. The tech-heavy NASDAQ neared a record high on Thursday.

Source: © Ene  | Megapixl.com

How did ASX 200 move so far?

The tech stocks gained after NASDAQ closed higher. Afterpay was up 4.8%, Xero climbed 2.7%, TechnologyOne advanced 3.4%, Appen rose 3.4% and WiseTech Global surged 2.5%

While Tech was up 4%, Health Care jumped 1.5%. Communication Services was up 2.2%.

However, the mining sector traded on a weak note. Newcrest Mining was down 4%, Northern Star dropped 3.4%, BHP fell 2.4% and Oz Minerals dipped 3.6%. Energy was also down 1.5%.

The broader All Ordinaries index was up 0.204%, while the ASX 200 VIX Index was down 0.671%.

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

Australian dollar and bond yields

The Australian dollar was trading 0.03% higher, at 0.7559. The dollar index was up 0.53% at 91.892, its highest level since mid-April.

The Australian 10-year bond yield was trading 2.60% lower, at 1.573. The benchmark US 10-year yields were last at 1.511%, after hitting a high of 1.594% on Wednesday.

READ MORE: Is AGL Energy (ASX:AGL) undervalued?

Commodity update

Crude oil prices fell overnight due to pressure from the strengthening US dollar. Brent crude slipped 2% to US$72.93 per barrel, while WTI crude fell nearly 1.8% to US$70.86 a barrel.

The WTI crude oil futures were trading 0.14% lower, at US$70.94.

Source: © Pichitbo   | Megapixl.com

Gold shed over 2%, participating in a sell-off across precious metals, with palladium losing a massive 11.1%, its worst day in over a year. Spot gold fell 2% to US$1,776.10 an ounce by 1:44 PM EDT.

The gold futures were trading 0.23% higher, at US$1,778.95.

Metals’ update

The most actively traded iron ore futures for a September month delivery increased by 1.0% to 1,224 yuan (US$190.31) a tonne at close.

The three-month copper futures contract on the London Metal Exchange (LME) saw a sizable fall of 4% to US$9,285 a tonne by 1600 GMT.

The copper futures were trading 0.50% higher, at US$4.1928.

READ MORE: Interested in Dividends? Here are three ASX-listed stocks to look for

Newsmakers

Telstra (ASX:TLS) announced that it would complete its delisting from the main board of the New Zealand Exchange at the close of business on Friday.

BetMakers (ASX:BET) said that it had completed its acquisition of Sportech’s racing, tote and digital assets in the US, the UK, and Europe.

                     

The Opening Bell || Will Tech Stocks Continue To Lift Market Sentiment Despite Weak Wall Street?

 

Bubs Australia (ASX:BUB) would launch its branded formula range on Walmart.com.

Altium (ASX:ALU) has lowered its guidance and said it expected revenue for FY2021 to be at the low end of the guidance range of US$190 million to US$195 million.

Sandfire Resources (ASX:SFR) has delivered its highest-value shipment of copper concentrate from its DeGrussa operations in Western Australia.

READ MORE: Which are the top 10 ASX-listed dividend stocks by dividend yield?

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