ASX tipped to open higher after Wall Street rebound
Key Takeaways
- •ASX 200 futures were up 0.4% to 8,979 points, pointing to a stronger open after the prior session hit a new 20-day low.
- •Wall Street closed higher across the major indexes after Treasury yields stabilised and large technology companies posted strong gains.
- •The Electric Vehicle Council said sustained EV sales growth indicates Australians are shifting structurally away from petrol cars.
- •Among local market updates, Askari Metals, Bhagwan Marine, Sun Silver, Corazon Mining and Many Peaks Minerals each reported project or contract developments.
- •Iron ore fell 1.62% to US$97.72 a tonne, Brent crude rose 0.54% to US$95.165 a barrel, and the Australian dollar bought US$0.716.
ASX today – The ASX is expected to open higher on Wednesday after Wall Street rebounded overnight.
ASX 200 futures were up 0.4 per cent to 8,979 points after dropping 88.30 points, or 0.97 per cent, to 8,978.40 last night and setting a new 20-day low. The index has fallen 1.64 per cent over the past five days and sits 3.42 per cent below its 52-week high.
Wall Street rose across the board after Treasury yields stabilised and major technology companies reported strong gains.
The S&P 500 Index rose 0.46 per cent to 7,666.60 points, the Dow Jones was up 0.56 per cent to 53,061.95 and the Nasdaq advanced 0.45 per cent to 26,217.83.
US stocks gained on Wall Street as big technology companies strengthened, while relatively steady oil prices and bond yields helped lift the market after a downbeat start to the week. The move higher on major US indexes matters for local trade because the ASX often takes its lead from offshore sentiment at the open, especially when futures are trading lower or higher in line with overnight moves in the US.
Meanwhile, the Electric Vehicle Council says new EV sales data suggests Australians are making a structural shift away from petrol towards electric vehicles.
“The sustained growth in monthly and annual EV sales points to a structural shift in Australia’s car market,” CEO Julie Delvecchio said.
“EVs are not only close to or at price parity with petrol cars, but Australians are also increasingly looking beyond the purchase price to what a vehicle will cost them over the years they own it. They are choosing electric vehicles to cut both their household bills and emissions.”
On the market news front, Askari Metals (ASX: AS2) is ramping up exploration at its Uis critical metals project; Bhagwan Marine (ASX: BWN) has secured a multi-year contract for the Riverside Guardian vessel; Sun Silver (ASX: SSI) has intersected broad silver-antimony mineralisation at Maverick; Corazon Mining (ASX: CZN) has identified resource growth potential through Chalice exploration; and Many Peaks Minerals (ASX: MPK) has confirmed depth extension potential at the Ouarigue prospect.
In forex, the Australian dollar is buying US$0.716.
In commodities, all priced in US dollars, iron ore was down 1.62 per cent to $97.72 per tonne in Singapore, Brent crude was up 0.54 per cent to $95.165 per barrel, gold was selling at $4387.78, and US natgas futures were up 3.26 per cent to $2.9986 per gigajoule.
That’s HotCopper’s Market Open, I’m Colin Sandell-Hay – happy trading.
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