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Highlights
- ASX200 is anticipated to end its seven-day losing streak today (21 June).
- Over the last five days, the S&P ASX200 index has lost 7.19% and 12.70% over the last 52 weeks.
- RBA will be reviewing its yield target today. Also, Governor Lowe is expected to speak on Inflation and monetary policy.
- While US markets were closed, European stocks rose sharply from last week’s sell-off.
Australian shares and benchmark index ASX200 are likely to get over the seven-day losing streak today. The expectations are based on a rebound witnessed in European shares. Also, ASX futures were up around 0.87% early morning (5:05AM AEST). The Aussie dollar also edged higher and even Bitcoin was 0.3% strong (5:10 AM AEST).
While the US share markets were closed for Juneteenth, the US index futures displayed a rebound on Monday.
Key ASX influencers today
- The local market investors will be eager to see the RBA review of yield targets, due at around 8:00 AM AEST.
- RBA Governor, Philip Lowe, will be speaking on inflation and monetary policy in Sydney today, at around 10:00 AM AEST.
- Another noteworthy document would be the 'minutes from the RBA’s June board meeting', expected to be released at 11.30 AM AEST.
- Other foreign data that could influence investors on the ASX, is the US Fed’s Chicago national activity index for May and the existing home sales for May in the US.
On the Global front
The US stock markets were closed for Juneteenth holiday.
European stocks rebounded strongly moving up from last week’s sell-off. French shares got plugged, as President Emmanuel Macron’s party lost an absolute majority in parliamentary elections.
The pan-European STOXX 600 index closed 1% higher. Travel and energy stocks led gains.
Notably, European Central Bank Chief, Christine Lagarde, reaffirmed plans to raise interest rates twice this summer. On Monday, she said that it was needed to fight the widening spreads in borrowing costs of different euro zone countries.
Also Read- FTSE 100 edges higher, BoE drops mortgage market affordability test
Asian shares were witnessing losses. However, China managed to buck the wider trend, with outperformance based on Beijing’s vows of economic support.
On the commodities front:
- Global growth concerns have been casting a shadow on investor sentiments. Crude oil was plunging, and iron ore prices have erased entire year’s gains.
- Commodity traders are worried about the market fundamentals due to China’s struggle to contain recent COVID-19 outbreaks. Chinese economy has been witnessing a slowdown in construction activity due to rains. Further, the Chinese steel inventories are spiking due to sluggish demand and weak profits.
- Base metals witnessed worst weekly loss in a year and copper extended an eighth session of loss.
- In crypto market, Bitcoin rose above US$20,000 after going down to US$18,000 over the weekend. The crypto market has been showcasing volatility due to pressure from anticipated sharp hikes in interest rates by the US Fed.
Related Read- Experts predict Bitcoin’s healthy rally. What’s in store?
