The Australian stock market is modestly higher on Thursday, extending the gains of the previous session, with the benchmark S&P/ASX 200 just below the 7,400 level, following the positive cues overnight from Wall Street, with technology and mining stocks providing the boost. However, the upside is capped amid concerns about the rising local coronavirus cases in New South Wales.
The authorities have confirmed an extension to Sydney’s lockdown yesterday with a warning to brace for a spike in COVID-19 cases. NSW reported 38 new local coronavirus cases on Thursday, the highest in a day in more than 1 4 months.
The benchmark S&P/ASX 200 Index is gaining 42.30 points or 0.58 percent to 7,369.20, after touching a high of 7,381.90 earlier. The broader All Ordinaries Index is up 44.40 points or 0.58 percent to 7,643.70. Australian markets ended notably higher on Wednesday.
Among major miners, BHP Group and OZ Minerals are gaining more than 2 percent each, while Mineral Resources is up almost 1 percent, Rio Tinto is adding almost 2 percent and Fortescue Metals is rising almost 3 percent.
Oil stocks are mostly lower after crude oil prices tumbled overnight. Oil Search, Woodside Petroleum and Santos are edging down 0.3 percent each, while Beach Energy is losing almost 1 percent. Origin Energy is edging up 0.1 percent.
Among the big four banks, Commonwealth Bank is losing almost 1 percent, while Westpac is flat. National Australia Bank and ANZ Banking are edging down 0.3 percent each.
Gold miners are higher after gold prices climbed overnight. Evolution Mining, Newcrest Mining and Northern Star Resources are edging up 0.4 percent each, while Resolute Mining and Gold Road Resources are adding more than 1 percent each.
In other news, shares in Sydney Airport are rising more than 3 percent after a consortium led by Macquarie Group is said to be exploring a rival offer for the airport operator to potentially challenge the IFM Investors’ $22.3 billion bid.
Shares in Zip Co. are surging almost 8 percent on reports that Swedish buy-now-pay-later giant Klarna may have taken a strategic stake of 4 percent stake worth about $160 million in the BNPL firm.
In the currency market, the Aussie dollar is trading at $0.747 on Thursday.
On Wall Street, stocks fluctuated over the course of the trading day on Wednesday before eventually ending the session modestly higher. With the uptick on the day, the S&P 500 and the Nasdaq once again reached new record closing highs.
The major averages all closed in positive territory, although the Nasdaq inched up just 1.42 points or less than a tenth of a percent to 14,665.06. The Dow climbed 104.42 points or 0.3 percent to 34,681.79 and the S&P 500 rose 14.59 points or 0.3 percent to 4,358.13.
The major European markets also moved to the upside on the day. While the German DAX Index jumped by 1.2 percent, the U.K.’s FTSE 100 Index climbed by 0.7 percent and the French CAC 40 Index rose by 0.3 percent.
Crude oil prices tumbled on Wednesday amid concerns that several leading oil producers will increase output following a disagreement over policy. West Texas Intermediate Crude oil futures for August ended down $1.17 or 1.6 percent at $72.20 a barrel.
Market Analysis
Australian Market Modestly Higher
2021-07-08 01:23:52
