The ASX 200 is edging higher on the second day of the month. Defying inflation expectations and virus concerns, commodity supercycle and economic recovery prospects are fuelling the market momentum.
With a barrage of macro numbers likely this week, markets may be reacting more frequently than ever. The latest economic data releases are reflecting a somewhat optimistic picture on growth revival prospects. Australian Gross Domestic Product (GDP) rose 1.8 per cent in seasonally adjusted chain volume terms in the March quarter 2021, according to figures released by the Australian Bureau of Statistics (ABS) today. According to the Institute for Supply Management (ISM), the US manufacturing activity picked up pace in May, as its index of national factory activity rose from 60.7 in April to a reading of 61.2.
On the other hand, the Commerce Department said that the US construction spending increased in April from the previous month as expenditures in non-residential and public projects compensated for the losses from reduced spending in the private construction sector.Having said that, the upbeat economic data seems to have again stoked investors’ concerns that rising inflation may lead the Fed to unwind its stimulus measures.
Engineering solutions firm Worley has said that it was on track for an improved second half performance in Financial year 2021. The company’s order backlog stood at $14.1 billion, up from $13.5 billion in the first half. The company added that sales pipeline of Financial year 2022 is 25 times the achieved sales of Financial year 2020 under low-carbon hydrogen.