How would ASX 200 open after US stocks traded mixed?

Summary

  • The Australian share market is expected to fall on Thursday, tracking weak cues from US shares.
  • Benchmark, the ASX 200 index, may open the day 13 points or 0.2% lower.
  • Benchmark, the ASX 200 index, may open the day 13 points or 0.2% lower.

The Australian share market is expected to fall on Thursday, tracking weak cues from US shares, which declined following the latest data showing a sharp slowdown in jobs growth last month.

Benchmark, the ASX 200 index, may open the day 13 points or 0.2% lower, according to the latest ASX futures. On Wednesday, the Australian market closed 0.4% higher to 7,503.2 points.

Global Market Roundup || Why did US stocks slip on weak jobs data?

The Dow Jones fell 0.9%, the S&P 500 dropped 0.45%, and the NASDAQ edged 0.1% higher. In July, US private payrolls reported a much lesser increase than expected, probably due to a shortage of workers and raw materials.

According to the ADP National Employment Report released on Wednesday, the employers added 330,000 jobs in previous month.

Source: © Outline205   | Megapixl.com

RELATED ARTICLE: Five growth stocks that more than doubled in 2021

The US non-manufacturing activity index touched an all-time high of 64.1 last month from 60.1 in June, as per the reading by the Institute for Supply Management.

Even as robust company earnings eased concerns over coronavirus Delta variant, market weighed inflationary pressures. There is a growing belief that the Federal Reserve may soon lower support for the economy.

Bond yields and dollar

US Treasury yields moved slightly higher despite disappointing payroll data as US Fed Vice Chair Richard Clarida’s comments triggered a rebound in US Treasury yields. Ten-year notes last rose 1/32 in price to yield 1.1721%.

The dollar recorded a quick recovery from the earlier fall following a weak payroll data. The dollar index fell as much as 0.2% to 92.246 before staging a recovery in the afternoon trade.

Crude oil prices inch lower

Crude oil prices continued their fall for the third straight day following a surprise build up in US inventories, weak economic data and concerns over fast-spreading coronavirus Delta variant. While crude fell 3.73% to US$67.93 per barrel, Brent was at US$70.16, down 3.11%.

Energy stocks such as Woodside Petroleum Ltd (ASX: WPL) and Santos Ltd (ASX:STO) could be under pressure on Thursday.

Source: © Joingate | Megapixl.com

RELATED ARTICLE: 10 hot consumer stocks under $1

Gold prices rise

Concerns over the Fed potentially easing asset purchases were offset by strong demand for gold. Spot gold added 0.1% to US$1,811.90 an ounce. Gold futures declined 0.03% to US$1,809.60 an ounce.

Gold miners, including Newcrest Mining Ltd (ASX:NCM) and Northern Star Resources Ltd (ASX:NST) could trade higher on Thursday.

Metals’ update

Following the latest concerns over coronavirus outbreak in China, triggering supply concerns for steelmaking ingredients, Chinese coking coal and coke futures ended higher. Benchmark iron ore futures on the Dalian bourse edged up 0.5% to 1,067 yuan per tonne.

On the other hand, copper prices eased on as greenback strengthened. Benchmark copper on the London Metal Exchange fell 0.9% to US$9,459 per tonne by 1600 GMT.

RELATED ARTICLE: 5 exciting consumer staple stocks on the ASX

RELATED ARTICLE: 10 ASX-listed cannabis stocks for August 2021

Comment


Disclaimer

Ad

GET A FREE STOCK REPORT


Top Penny Picks under 20 Cents to Fit Your Pocket! Get Exclusive Report on Penny Stocks For FREE Now.


   
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK