How would ASX 200 trade on the last day of the week?

Summary

  • The Australian shares are expected to open on a higher note on Friday, tracking strong cues from US peers.
  • The benchmark ASX 200 index may open the day 1% higher.
  • The Dow Jones rose 0.45%, the S&P 500 climbed 0.4%, and the NASDAQ edged 0.1% higher.

The Australian shares are expected to open on a higher note on Friday, tracking strong cues from US peers, while an extended lockdown in New South Wales continued to exert pressure on the market.

The benchmark ASX 200 index may open the day 0.1% higher. On Thursday, the benchmark closed 0.5% higher at 7,417.4 points.

On Wall Street, US shares scaled record highs overnight, buoyed by robust company earnings and encouraging economic data. The Dow Jones rose 0.45%, the S&P 500 climbed 0.4%, and the NASDAQ edged 0.1% higher.

Source: © Joingate | Megapixl.com

READ MORE: 10 hot consumer stocks under $1

The second-quarter gross domestic product (GDP) data showed that the US economy grew by 6.5% on an annualised basis, up slightly from last year. Meanwhile, jobless claims stood at 400,000, resuming their downward trajectory. Even as the two figures were below market expectations, investors largely shunned the disappointment.

On Wednesday, US Federal Reserve had said that it was not the right time to start tapering economic stimulus, pinning the dollar at a one-month low.

Meanwhile, stock markets also traded higher in other parts of the globe on strong earnings in Europe. The concerns over Chinese sell-off were also eased after the country’s regulators called banks overnight to smoothen concerns about a widening regulatory crackdown.

Bond yields and dollar

US Treasury yields edged higher after a soft 7-year note auction added to the positive risk tone. The 10-year Treasury yield trade up a little at 1.267% in the afternoon trade.

Global Market Roundup || US Stocks Advance On GDP Data, Economy Outlook

The dollar declined to a one-month low, a day after US Fed said that the jobs market still had to recover more before going ahead with easing monetary stimulus. The dollar index was down 0.383% at 91.905, its lowest since June 29.

Crude oil prices rise

Crude oil prices rose on Thursday as supplies in the US further tightened, and the US dollar softened. While the US crude rose 1.64% to US$73.58 per barrel, Brent was at US$76.06, up 1.77% on the day.

Stocks of major energy companies such as Santos Ltd (ASX:STO) and Woodside Petroleum Ltd (ASX: WPL) could trade higher on Friday.

Source: © Outline205   | Megapixl.com

READ MORE: Five growth stocks that more than doubled in 2021

Gold prices inch higher

Gold prices rose by 1% after investors cheered that Fed was more focused on economic growth than controlling price pressures. Such an approach bodes well for the yellow metal, considered a hedge against inflation.

Spot gold added 1.2% to US$1,827.79 an ounce. US gold futures rose 1.58% to $1,828.10 an ounce.

The leading gold mining stocks including Northern Star Resources Ltd (ASX:NST) and Newcrest Mining Ltd (ASX:NCM) could trade higher on Friday.

Metals’ update

Iron ore prices fell, weighed by prospects of a slowdown in demand from China. As a result, the most-traded iron ore for September delivery on China's Dalian Commodity Exchange closed 1.6% lower at 1,114.50 yuan (US$172.37).

On the London Metal Exchange (LME), the benchmark copper traded up 1.3% at US$9,816 a tonne at 1603 GMT.

READ MORE: 5 exciting consumer staple stocks on the ASX

READ MORE: 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