ASX poised to retreat at open
“We were pretty overvalued going into this week,” said Chris Zaccarelli, chief investment officer, Independent Advisor Alliance, Charlotte.
“It’s not surprising to see a pullback.”
3. ASX: After hitting a three-month high on Thursday, the Australian sharemarket is poised to dip today, with futures pointing to a slide of 20-odd points at the open. Yesterday, the ASX added 50 points, or 0.9 per cent.
4. Aussie treads water: The Australian dollar remains on the cusp of hitting US70c. At 8am AEST, the Aussie is fetching 69.41 US cents.
5. Oil waits on OPEC: Oil prices were little changed in choppy trade overnight as investors awaited a decision from top crude producers on whether to extend record output cuts.
The Organisation of the Petroleum Exporting Countries (OPEC) and allies led by Russia, a group known as OPEC+, are debating when to hold ministerial talks to discuss a possible extension of the existing cuts.
Brent crude futures ended the session 20 US cents, or 0.5 per cent higher, at $US39.99 a barrel after a volatile session. US West Texas Intermediate (WTI) crude futures rose 12 US cents to $US37.41.
6. Europe hits a wall: A strong rally this week in European stocks stalled on Thursday as investors locked in profits, although euro zone banks surged after the European Central Bank ramped up its stimulus programme to prop up the coronavirus-hit economy.
The euro zone stock index closed 0.2 per cent lower after falling as much as 0.8% earlier in the session, but the bloc’s lenders gained 1.1 per cent.
7. Gold shines: Gold rose more than 1 per cent on Thursday as the dollar retreated and Wall Street paused its recent rally as dismal US trade data overshadowed slightly upbeat labor market numbers and optimism about an economic rebound.
Spot gold was up 1.3 per cent to $US1,719.42 per ounce by 1834 GMT. US gold futures settled up 1.3 per cent at $US1,727.40.
“Equity markets are still trading in the red and for gold market participants, that’s interpreted as a bout of risk-off and is leading to an increase in investment demand,” said Daniel Ghali, commodity strategist at TD Securities.
8. Market watch:
ASX futures down 21 points or 0.4% to 5979 near 6.30am AEST
- AUD +0.4% to 69.47 US cents (overnight peak 69.88)
- On Wall St: Dow +0.1% S&P 500 -0.3% Nasdaq -0.7%
- In New York: BHP -0.2% Rio +0.2% Atlassian -6.2%
- In Europe: Stoxx 50 -0.2% FTSE -0.6% CAC -0.2% DAX -0.5%
- Spot gold +1.1% to $US1718.72 an ounce at 2.45pm New York time
- Brent crude +0.1% to $US39.85 a barrel
- US oil -0.1% to $US37.25 a barrel
- Iron ore -2% to $US99.24 a tonne
- Dalian iron ore -1% to 745.5 yuan
- LME aluminium -0.1% to $US1566.50 a tonne
- LME copper +0.1% to $US5528 a tonne
- 2-year yield: US 0.19% Australia 0.27%
- 5-year yield: US 0.41% Australia 0.41%
- 10-year yield: US 0.82% Australia 1.01% Germany -0.33%
- US prices as of 4.42pm New York
This column was produced in commercial partnership between The Sydney Morning Herald, The Age and IG
Information is of a general nature only.