The ASX Today

The ASX is indicating it will open higher on the back of major US indices closing at record highs on Monday.

The ASX is indicating it will open higher on the back of major US indices closing at record highs on Monday.

ASX SPI 200 Futures traders have marked up the index by 19 points, building on yesterday's 48-point lift which came from light trading volumes.

It's looking likely to be another day of widespread gains on the local market based on global peers outperforming overnight. Technology, healthcare, financial and resource stocks fared the best in the US, where the energy sector was the laggard on oil output concerns.

KEY POINTS

  • Energy stocks, among the better performers of the week, could come under pressure today
  • RBA monthly policy meeting – consensus for cash rate to remain unchanged at 1.5 per cent
  • Dividends paid today: Fortescue Metals, Tatts, Boral, among several smaller companies
  • New home sales data, building approvals for August scheduled
  • ANZ job ads data for September released
  • ANZ-Roy Morgan weekly consumer confidence data

This local trading session should see the highest participation since last Thursday with public holidays interrupting trade in-between.

Trading volumes were historically very low yesterday. Just $3.41 billion was traded through the ASX 200, around half the daily average of $6 billion-plus for the year-to-date. Before yesterday, the ASX 200 was treading water below 5700 points, so strategists are closely watching the breakout above 5700 that we witnessed yesterday.

US share markets were boosted overnight by stronger-than-forecast construction spending data for August and factory activity for September. The ISM manufacturing PMI climbed to a level not seen since May 2004. 

The Dow was driven 0.68 per cent higher to 22,557 points, while the S&P 500 climbed to 2529 points and the Nasdaq rose 0.32 per cent to 6516 points.

In a session of widespread gains, oil producers were the weaker links for the S&P 500, but the sector still only fell by 0.2 per cent in the end.

Oil was the biggest mover in the commodities world overnight, falling on a rise in US drilling, higher OPEC output and Iraq announcing its exports have recently risen slightly. WTI oil dropped around 2.2 per cent to $US50.52 and Brent crude is 1.29 per cent lower at $US56.06.

The Australian dollar is relatively unchanged day-on-day at US78.25c this morning. 

Market Summary: 
IndexLastPoints ( /-)Change (%)
Dow22,557.60152.510.68
S&P 5002,529.129.760.39
Nasdaq6,516.7220.760.36
FTSE 1007,438.8466.080.90
DAX12,902.6573.790.58

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.

If you'd like to join this conversation, please login or sign up here

Related Articles