The Early Trades || What are the key highlights from Australia’s Federal Budget 2021-22?

Australia’s federal budget has opened glimmers of hope for businesses, economy, and households. At the same time, simmering inflation expectations continue to drive the market volatility. Let us cast an eye over how market charter is panning out on a day after the federal budget. 

• Australian shares are trading marginally lower on Wednesday, tracking a sell-off on Wall Street overnight as worries about rising inflation in the United States set a risk-averse mood. 

• The US equities was seen hitting a one-month low as speculation about increasing inflation pressure led to the possibility of prompt interest rate hikes in the near future which dragged stock market and hobbled the dollar. 

• Looking at commodity space, Gold recovered from early declines, as softer US dollar negated losses arising by rising US Treasury yields.  

• ASX gold shares such as De Grey Mining Limited (ASX:DEG), Newcrest Mining Limited (ASX:NCM), Gold Resources (ASX:GOR) and Resolute Mining Limited (ASX:RSG) are trading in green zone. 

• Oil prices remained highly volatile during the day and had reversed all early losses by the end of Tuesday's session.  

• The gains materialised on the back of fears of a gasoline shortage after a cyber-attack caused an outage at the largest US fuel pipeline system. 

• Having said that, India’s virus havoc continues to offer significant tailwinds. Australian energy companies such as Santos Limited (ASX:STO), Origin Energy Limited (ASX:ORG) and Woodside Petroleum Limited (ASX:WPL) are trading in the red territory. 

• IT shares such as Nearmap and Zip Co are under the spotlight among top 5 ASX 200 gainers. 

• Commonwealth Bank (ASX:CBA) has reported cash profit for its third quarter of $2.4 billion on the back of surging lending to business and the bank’s CEO Matt Comyn said measures announced in Tuesday’s federal budget will encourage more businesses to borrow.

• United States Pushpay Holdings Ltd (ASX:PPH) reported an increased operating revenue of approximately US$52 million for the year ended 31 March 202, representing an increase of 40%.  

• Carsales.Com Ltd (ASX:CAR) has said that it will acquire 49% of US digital marketplace business Trader Interactive for AU$797 million. 

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