The ASX Today
The ASX has cracked trendline resistance and is gearing up for a more positive start, following cues from overseas.
The ASX has cracked trendline resistance and is gearing up for a more positive start, following overseas cues.
US indices rose more than 1 per cent on geopolitical tensions abating at the weekend. The S&P 500 was up 1.09 per cent to hit a new record close, 2488.11 points, while the Dow lifted 1.19 per cent, and the Nasdaq 1.13 per cent.
ASX SPI 200 Futures traders have added another 26 points overnight.
AxiTrader chief market strategist, Greg McKenna, believes it should be a good day on the ASX given the break of trendline resistance yesterday, which the ASX just couldn't crack last week.
“A break of 5,735 for the physical ASX 200 and the SPI would be a good sign that a move back toward 5,800 has begun,” said McKenna.
- ASX tipped for a positive start on breaking resistance yesterday
- NAB monthly business survey published
- Gold loses some sparkle for now, copper gains
- Metals likely to be a mixed bunch on the local market after slumping yesterday
- Trading ex-dividend: CSL, Cimic, News Corp
Gold shed $19 to under $1340 on a rising US dollar and higher bond rates, while copper put on a little bit, just 0.84 per cent, which is small change considering the more positive market sentiment.
Brent crude was flat, but better than Friday, when the price was tangled up in Hurricane Irma woes.
Yesterday resources came under pressure on the ASX as most other sectors rallied. On the back of metal movements noted above, the same story could continue today, and might find support from NAB business conditions released later on.
Business condition levels were last measured to be at 15, having maintained an elevated level through 2017. To a large degree, retail and mining have lagged behind in this conditions survey.
Some fund managers rotated from ASX materials to financials yesterday, noted IG analyst Chris Weston, but he believes there is potential for materials to push back today.
“Today we should see both sectors working higher with BHP expected to open 1.6 per cent higher and Vale's US listing closing 1.3 per cent higher, so both names indicate a more upbeat feel to Aussie miners,” said Weston, adding spot iron ore's 5 per cent “smashing” was followed with rally in iron ore and steel futures in China.
AxiTrader's McKenna said the push toward a record S&P 500 close felt like more than just hurricane and North Korea relief, although time will tell if proven right.
As the US dollar continued its recovery, the Australian stayed relatively level yesterday, after falling from Friday's highs. It looked to be supported by stable-to-better metals and iron ore prices. It's still taking just above US80c this morning.
Want access to our latest research and new buy ideas?
Start a free 15 day trial and gain access to our research, recommendations and market-beating model portfolios.Sign up for free
Join the Conversation...
There are comments posted so far.