The Australian stock market is slightly higher on Monday, recouping some of the losses in the previous two sessions, with the benchmark S&P/ASX 200 just below the 7,500 level, following the broadly positive cues from Wall Street on Friday on upbeat comments by Fed Chairman Jerome Powell and firm commodity prices sending materials, energy and mining stocks higher.
However, traders remain concerned as the country struggles to contain the domestic coronavirus situation, primarily in New South Wales and Victoria, with states and territories going in for tighter restrictions and lockdowns.
NSW reported a record 1,218 new cases on Sunday. Victoria also recorded 73 new locally acquired cases, with the total active cases of COVID-19 across Victoria standing at 805.
The benchmark S&P/ASX 200 Index is gaining 8.80 points or 0.12 percent to 7,497.10, after touching a high of 7,528.30 and a low of 7,476.00 earlier. The broader All Ordinaries Index is up 20.70 points or 0.27 percent to 7,780.80. Australian stocks closed marginally lower on Friday.
Among the major miners, BHP Group, Rio Tinto and OZ Minerals are gaining almost 3 percent each, while Fortescue Metals is adding more than 6 percent and Mineral Resources is up more than 4 percent.
Fortescue Metals doubled its final dividend to $2.11 after a record year of shipments sent profit surging.
Oil stocks are mostly higher, with Oil Search and Beach energy gaining almost 2 percent each, while Santos is adding almost 3 percent. Origin Energy is flat and Woodside Petroleum is edging down 0.3 percent.
Among tech stocks, Appen and WiseTech Global are losing almost 2 percent each, while Xero is down almost 1 percent. Afterpay is adding more than 1 percent.
Gold miners are higher. Evolution Mining is gaining more than 2 percent, while Newcrest Mining is adding more than 1 percent and Gold Road Resources is up more than 2 percent. Northern Star Resources is rising almost 4 percent and Resolute Mining is adding more than 3 percent.
Among the big four banks, Commonwealth Bank and ANZ Banking are losing more than 1 percent each, while National Australia Bank and Westpac are declining almost 1 percent each.
In the currency market, the Aussie dollar is trading at $0.731 on Monday.
On Wall Street, stocks closed firmly in positive territory on Friday, reacting to Federal Reserve Chairman Jerome Powell’s remarks at the Jackson Hole symposium. The major averages all posted strong gains, with S&P and Nasdaq moving on to post fresh record closing highs.
The Dow ended the session with a gain of 242.68 points or 0.69 percent at 35,455.80, after climbing to a high of 35,479.18. The S&P 500 ended stronger by 39.37 points or 0.88 percent at 4,509.37, slightly off a new intra-day high of 4,513.22. The Nasdaq, which climbed to 15,144.48, settled at 15,129.50, gaining 183.69 points or 1.23 percent.
The major European markets also moved to the upside on the day. While the U.K.’s FTSE 100 gained 0.32 percent, Germany’s DAX ended 0.37 percent up and France’s CAC 40 gained 0.24 percent.
Crude oil futures settled sharply higher on Friday amid possible near-term disruptions in oil and natural gas operations in the Gulf of Mexico region due to the impact of Hurricane Ida. West Texas Intermediate Crude oil futures for October ended up by $1.32 or about 2% at $68.74 a barrel.
Market Analysis
Australian Market Slightly Higher
2021-08-30 02:11:58
