ASX 200: Will shares trade higher on final day of financial year?

Summary

  • The ASX 200 opened marginally higher after frontline technology shares lifted the S&P 500 and the NASDAQ Composite to record highs overnight.
  • By 10:30 AM (AEST), the ASX 200 was trading 0.88% higher, at 7,365.50.
  • Meanwhile, on Wall Street, the Dow Jones was up 0.03%, while the S&P 500 also gained 0.03%. The NASDAQ added 0.19%.

The ASX 200 opened marginally higher on Wednesday after frontline technology shares lifted the S&P 500 and the NASDAQ Composite to record highs overnight. The benchmark index started the final day of the financial year 2020-21 up 6.20 points to 7307.40. On Tuesday, the domestic equity benchmark settled 0.08 lower, at 7,301.2, recovering from 0.9% drop during the session.

                     

The Opening Bell || ASX 200: Will Shares Trade Higher On Final Day Of Financial Year?

 

By 10:30 AM (AEST), the ASX 200 was trading 0.88% higher, at 7,365.50.

Meanwhile, on Wall Street, the Dow Jones was up 0.03%, while the S&P 500 also gained 0.03%. The NASDAQ Composite added 0.19%. The US shares surged after a survey showed that US consumer confidence in June 2021 hit its highest since the start of the coronavirus pandemic.

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How has ASX 200 performed so far?

Almost all sectors were trading higher in the opening trade. While Communication Services was up 2.5%, Metals & Mining and Materials were up 1.7%. Telstra is up 5%, while BHP and Rio Tinto were both up nearly 1.8% and South32 was up 3.6%.

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

The big four banks were trading on a strong note and Macquarie Group was up 1.1%.

Utilities was down over 1%.

The broader All Ordinaries index was up 0.845%, while the ASX 200 VIX Index was down 2.023%.

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

Bonds and dollar

The Australian 10-year bond yield was trading 0.47% lower, at 1.490. The benchmark 10-year US bond yield, which rose as high as 1.51% during Tuesday’s session, was last traded flat at 1.4782%.

The Australian dollar was trading 0.08% higher, at 0.7519.

Commodity update

Brent crude futures were up 0.4%, at US$75.01 per barrel by 11:49 AM EDT, recovering after a 2% fall on Monday. West Texas Intermediate (WTI) crude futures rose 0.4%, to US$73.19.

While Brent oil futures were trading 0.11% higher, at US$74.75, WTI futures were trading 0.81% higher, at US$73.58.

READ MORE: Which stock has paid the highest dividend in 2021?

On Tuesday, gold prices fell to their lowest level since mid-April 2021 as the US dollar gained. The US gold futures were down 1%, at US$1,763.60 an ounce.

Gold futures were trading 0.05% lower, at US$1,762.65.

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Metals’ update

The most active September futures contract for iron ore on China's Dalian Commodity Exchange (DCE) closed 2.7% lower at 1,153 yuan (US$178.57) per tonne, after four straight sessions of gains.

Three-month copper on the London Metal Exchange (LME) fell 0.3% to US$9,352 a tonne by 1651 GMT after falling as low as US$9,236 earlier in the session.

Copper futures were trading 0.29% lower, at US$4.2693.

Newsmakers

AGL Energy (ASX:AGL) announced that it will change its name to Accel Energy and demerge its retailing business, AGL Australia, into a separate entity in the Q4 of FY2022.

Rio Tinto (ASX:RIO) declared force majeure on customer contracts at its Richard Bay Minerals subsidiary in South Africa, owing to an escalation in the security situation at the operations.

Telstra (ASX:TLS) has sold a 49% interest in its Telstra InfraCo Towers business to a consortium of the Future Fund, Commonwealth Superannuation Corporation and Sunsuper.

TIN Mines (ASX:TIN) said that it has received firm commitments from existing and new institutional and significant  investors for a capital raising of AU$5,250,000 via new fully paid ordinary shares.

Nuix (ASX:NXL) said that ASIC is conducting an investigation in relation to its former CFO, Stephen Doyle, Ross Doyle and Ronald Doyle.

READ MORE: Five exciting ASX stocks you might not want to miss

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