Will ASX 200 continue its strong momentum?

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  • ASX 200 is poised to open 0.5 per cent or 33 points higher compared to yesterday’s close.
  • With the market discounting the Fed’s minutes, the volatility in the U.S. markets has reduced.
  • The U.S. dollar slightly notched up higher while the Australian dollar fell 0.65 per cent to 0.7607.

On Wednesday, ASX 200 continued its uptrend and closed the session up by 0.61 per cent or 42.1 points to 6928, marking its 4-day winning streak. Today, the benchmark index is looking to continue its momentum as the market is expected to open 0.5 per cent or 33 points higher compared to yesterday’s close.

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The U.S. markets had a mixed session on Wednesday, with the Dow Jones closing 0.05 per cent up at 33446.3 and S&P 500 gaining 0.15 per cent. Nasdaq was mildly down by 0.07 per cent.

U.S. Treasury yields pared some of the losses after the Federal Reserve, in minutes of its latest meeting, said that the economic recovery remains far from complete despite visible signs of progress. The traders expressed caution about the continued risks of the pandemic and reiterated the Federal Reserve’s commitment to an accommodative stance until the recovery was more secure.

In an attempt to regain some ground after dipping following the release of the Fed’s minutes, the benchmark 10-year yield inched up by 1.83 per cent to 1.677 per cent.

With the market discounting the minutes, the volatility in the U.S. markets has reduced. The CBOE VIX index has fallen 5.3 per cent to 17.16. The ASX 200 VIX index crashed by a massive 20.6 per cent to 11.1 in the last session.    

Image Source: ID 115601517 © Dzha33 | Megapixl.com

The U.S. dollar slightly notched up higher after oscillating for much of the session, rising in the wake of the Fed minutes release. The dollar index rose 0.08 per cent, while the Australian dollar fell 0.65 per cent to 0.7607 against the greenback.

Bitcoin fell 2.97 per cent to US$56,295 after retracing from the week’s low of US$55,400.

Read More: INR puts worst show in 20 months on fears of liquidity glut

Crude oil prices rise

Crude oil prices inched up higher on the back of improving global economic outlook but were held in check by rising gasoline inventories.

The WTI crude closed at US$59.77 a barrel, up 0.74 per cent, while Brent crude was up by 0.67 per cent to settle at US$63.16 per barrel.

Energy players such as Origin Energy Limited (ASX:ORG) and Oil Search Limited (ASX:OSH) could trade mildly up today.

Gold price softened

Gold prices fell a bit as economic optimism drew investors’ attention away from the safe-haven asset in favour of riskier assets.

The spot gold fell 0.4 per cent to US$1,737.11 an ounce, while U.S. gold futures closed 0.1 per cent lower at US$1,741.6 an ounce.

Gold miners such as De Grey Mining Limited (ASX:DEG) and Regis Resources Limited (ASX:RRL) could be laggards for today’s session.



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