ASX 200 today: Will travel stocks continue to drag down the market?

Summary

  • The ASX 200 opened on a weak note after the US stocks rallied in the previous session to their best week since February.
  • By 10:30 AM (AEST), the ASX 200 was trading 0.33% lower, at 7,283.70.
  • Meanwhile, the Dow Jones rose 0.71%, while the S&P 500 gained 0.34%. The NASDAQ dropped 0.06%.

The Australian sharemarket opened on a weak note on Monday after the US stocks rallied in the previous session to their best week since February. The market traded weak, mainly led by decline in travel stocks after introduction of coronavirus lockdown. The ASX 200 was up just 1.50 points at 7,309.50 at the start of the session.

By 10:30 AM (AEST), the ASX 200 was trading 0.33% lower, at 7,283.70.

The benchmark ASX 200 settled 0.5% higher at 7,308 on Friday, notching its its first weekly loss in six weeks as surging COVID-19 cases in New South Wales kept markets on edge.

Meanwhile, the Dow Jones rose 0.71%, while the S&P 500 gained 0.34%. The NASDAQ dropped 0.06%. The US market ended largely higher on weaker-than-expected inflation data and reports that US President Joe Biden has secured a bipartisan infrastructure agreement with lawmakers.

Source: ©Shimanovichs   | Megapixl.com

READ MORE: Is it good to invest in ASX travel stocks now?

What has happened so far?

Over the last five days, the index has gained 0.70% and is currently 1.62% off its 52-week high.

Travel stock such as Webjet was down 4.2%, Flight Centre was down 4.1% and Qantas dropped 3.8%.

                   

The Opening Bell || Will The Dip In Travel And IT Stocks Continue To Pull Down The ASX 200 Strings?

 

Information & Technology sector was down nearly 3%, while Industrials was down over 1%.

However, retail stocks gained. Kogan.com was up 8% and Metcash was up 3% on reports of strong results. Consumer staples was up nearly 0.8% and Metals & Mining and Materials were also up 0.2%.

The broader All Ordinaries index was down 0.472%, while the ASX 200 VIX Index was up 4.27%.

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

Australian dollar and bond yields

The Australian dollar was trading 0.06% lower, at 0.759. The dollar index settled without any change at 91.838.

The benchmark 10-year US Treasury yield had risen above 1.50% on Friday to close out a week with largest weekly gains since March 2021. The Australian 10-year bond yields were trading 1.84% higher, US$1.553.

Commodity space

Brent crude futures rose 0.8%, to close at US$76.18 per barrel, while US West Texas Intermediate (WTI) crude oil was up 1.0%, to US$74.05.

While Brent oil futures were trading 0.28% higher, at US$75.59, WTI futures were trading 0.34% higher, at US$74.30.

On Friday, gold edged higher. The far month US gold futures were little changed at US$1,782.80 an ounce. Gold futures were trading 0.14% higher, at US$1,780.25.

READ MORE: How to invest in gold stocks in Australia?

Metals’ update

The most-traded iron ore futures for September delivery on the Dalian Commodity Exchange (DCE) rose to 1,171.5 yuan a tonne, compared to 1,170.5 the day before.

The benchmark copper on the London Metal Exchange (LME) was almost unchanged at around US$9,417 per tonne at 1605 GMT. The prices of copper were up around 5% last week.

Copper futures were trading 0.13% lower, at US$4.2765.

Source: ©Ymgerman    | Megapixl.com

Newsmakers

Metcash (ASX:MTS) has increased its dividend following strong performance in FY21. The company announced a 40% increase in FY21 dividends to 17.5 cents a share after declaring a final dividend of 9.5 cents a share.

Perpetual (ASX:PPT) appointed New York-based Mona Aboelnaga Kanaan, managing partner of private equity firm K6 Investments and a former CEO of Proctor Investment Managers, as an independent director.

Gold Road Resources (ASX:GOR) said that it expected the gold production from its Gruyere mine to be lower-than-expected because of disruptions to the processing plant at the site.

Barton Gold Holdings Ltd (ASX:BGD) said that its shares will start trading on ASX at 11 AM (AEST) on Monday, following completion of the oversubscribed initial public offering (IPO).

Ophir High Conviction Fund (ASX:OPH) said that it may pay a distribution for the year ended 30 June 2021. The distribution has been estimated at AU$0.36.

READ MORE: 4 ASX-listed stocks with dividend yield over 5%

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