The Australian stock market is modestly higher on Monday, recouping the modest losses in the previous session, with the benchmark S&P/ASX 200 below the 7,400 level, following the mixed cues from Wall Street on Friday, with materials and energy stocks gaining as crude oil and iron ore prices climbed. Sentiment was also lifted following the easing of coronavirus-related restrictions in most regional areas.
However, the precarious domestic coronavirus situation, primarily in New South Wales and Victoria, is also weighing in investor sentiment. NSW reported 787 new locally acquired cases and twelve deaths on Sunday. Victoria also recorded 705 new locally acquired cases and one death, with the total active cases of COVID-19 across Victoria standing at 8,538.
The benchmark S&P/ASX 200 Index is gaining 45.70 points or 0.62 percent to 7,388.30, after touching a high of 7,400.80 earlier. The broader All Ordinaries Index is up 46.00 points or 0.60 percent to 7,695.30. Australian stocks closed modestly lower on Friday.
Among the major miners, BHP Group and OZ Minerals are gaining more than 1 percent each, while Rio Tinto is adding more than 2 percent. Fortescue Metals and Mineral Resources is surging more than 4 percent each.
Oil stocks are higher, with Origin Energy gaining more than 1 percent, Beach energy adding almost 3 percent and Woodside Petroleum higher by more than 3 percent, while Oil Search and Santos are up almost 2 percent each.
Among tech stocks, Afterpay, Xero and Appen are down almost 1 percent each, while WiseTech Global is losing more than 1 percent.
Gold miners are mixed. Evolution Mining is up 0.3 percent, while Newcrest Mining and Northern Star Resources are edging up 0.5 percent each. Gold Road Resources is edging down 0.3 percent and Resolute Mining is declining almost 1 percent.
Among the big four banks, Commonwealth Bank is gaining more than 2 percent, while ANZ Banking, Westpac and National Australia Bank are up more than 1 percent each.
In the currency market, the Aussie dollar is trading at $0.728 on Monday.
On Wall Street, stocks showed a lack of direction over the course of the trading session on Friday, after moving sharply higher for two straight days. The major averages spent the day bouncing back and forth across the unchanged line.
The major averages eventually ended the session narrowly mixed. While the Nasdaq edged down 4.55 points or less than a tenth of a percent to 15,047.70, the Dow crept up 33.18 points or 0.1 percent to 34,798.00 and the S&P 500 ticked up 6.50 points or 0.2 percent to 4,455.48.
Meanwhile, the major European markets all moved to the downside on the day. While the French CAC 40 Index slumped by 1 percent, the German DAX Index fell by 0.7 percent and the U.K.’s FTSE 100 Index dipped by 0.4 percent.
Crude oil prices climbed Friday and front-month WTI oil futures contracts saw gains for a fifth straight week amid tighter supplies. West Texas Intermediate Crude oil futures for November rose $0.68 or 0.9 percent at 73.98 a barrel. WTI Crude futures gained 2.8 percent for the week.
Market Analysis
Australian Market Modestly Higher
2021-09-27 01:38:41
