What to expect from ASX 200 on last day of the week?

Summary

  • The Australian share market is expected to open on a weak note despite US shares closing higher.
  • On Thursday, the benchmark index closed 1.06% higher at 7,386.40.
  • While the Dow Jones rose 0.1%, the S&P 500 climbed 0.2%. The NASDAQ Composite surged 0.35% higher.

The Australian share market is expected to open on a weak note on Friday despite US shares closing higher overnight. Earlier in the day, Wall Street witnessed choppy trading after the latest data showed a rise in jobless claims as the economy faced challenges due to the coronavirus pandemic.

According to the latest ASX futures, the ASX 200 may start the day 23 points or 0.3% lower. On Thursday, the benchmark index closed 1.06% higher at 7,386.40.

While the Dow Jones rose 0.1%, the S&P 500 climbed 0.2%. The NASDAQ Composite surged 0.35% higher. Tech stocks lifted Wall Street to close higher on Thursday.

Analysts were of the view that the market was probably digesting some volatility from the last few days. Even as the unemployment data by the US Labour Department added concerns, it also showed that more people are returning to work, a trend that bodes well for July's employment report, they added.

Source: ©Shimanovichs   | Megapixl.com

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Bonds and dollar

Following an auction of US$16 billion in 10-year treasury inflation protected security (TIPS), the US bond yields eased. The yield on 10-year Treasury notes fell 2.2 basis points to 1.260%.

The dollar index rose 0.1% to 92.87, as the impact of the softer-than-expected US jobless claims data faded. 

                     

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The Australian dollar bounced to AU$0.7350, having hit an eight-month trough of AU$0.7290 overnight.

Crude oil prices rise

Crude oil price surged nearly US$1.50 a barrel on Thursday on expectations of tighter supplies through 2021 as economies recovered from the coronavirus crisis.

Brent crude settled at US$73.79 a barrel, up 2.2%, while US West Texas Intermediate (WTI) ended US$71.91 a barrel, rising 2.3%.

Energy stocks such as Viva Energy Group (ASX:VEA), Santos (ASX:STO) and Woodside Petroleum (ASX:WPL) could rise today.

Gold prices inch higher

Gold prices rose as stocks and US bond yields pulled back to offset a firmer dollar. US gold futures rose 0.1% higher to US$1,805.40.

Gold mining stocks such as Northern Star Resources (ASX:NST), and Silver Lake Resources (ASX:SLR) would be on watch.

Source: © Outline205   | Megapixl.com

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Iron ore sinks

The most traded iron ore futures on the Dalian Commodity Exchange for the September delivery ended 5.3% lower at 1,138 yuan per tonne.

Copper gains

Copper prices gained on Thursday, supported by a softer dollar. Benchmark copper on the London Metal Exchange (LME) rose 1.1% to US$9,451 a tonne by 1635 GMT.

Bitcoin trades firm

After the reports that Tesla boss Elon Musk said the carmaker might restart accepting Bitcoin payments after due diligence on its energy use, cryptocurrencies rebounded from lows and traded firm. Bitcoin was up 0.32% at US$32,245 at the time of writing.

Economic update

The Australian Bureau of Statistics will release data on the longitudinal labour force.

Markit July PMIs for either services, manufacturing, or both: Euro zone, the UK, and the US.

UK GfK consumer sentiment July and retail sales June.

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