Will ASX 200 continue its strong momentum?

Source:hxdbzxy, Shutterstock

Summary

  • 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.

Image Source: Copyright © 2021 Kalkine Media Pty Ltd.

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.

 

 


Disclaimer
The website https://kalkinemedia.com/au is a service of Kalkine Media Pty. Ltd. (Kalkine Media) A.C.N. 629 651 672. The principal purpose of the content on this website is to provide factual information only and does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) or engage in any investment activity under discussion. We are neither licensed nor qualified to provide investment advice through this platform. In providing you with the content on this website, we have not considered your objectives, financial situation or needs. You should make your own enquiries and obtain your own independent advice prior to making any financial decisions.
Some of the images that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed on this website unless stated otherwise. The images that may be used on this website are taken from various sources on the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image. The information provided on the website is in good faith, however Kalkine Media does not make any representation or warranty regarding the content, accuracy, or use of the content on the website.

 

   
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