The ASX Today

The ASX is indicating it will start on the right foot this morning after commodity markets rallied overnight. 

The ASX is indicating it will start on the right foot this morning after commodity markets rallied overnight. 

Despite weakness across share markets, US dollar weakness has helped metals rally, and all the big miners have benefitted already in overseas listings. BHP is tipped to open 0.6 per cent higher. 

Energy stocks look set for a better day, based on oil price rises in the range of 1-2 per cent, which the S&P 500 energy sector grabbed as a strong lead in the session just passed.

The Australian dollar has naturally moved higher on US dollar weakness.

KEY POINTS

  • ASX tipped for a boost on stronger metals prices
  • Detailed job market data released locally today
  • Australian dollar finds support, back above US76c
  • US dollar, equities finish lower ahead of Thanksgiving Holiday

Gold is at $US1294 this morning, and other metals have rallied too. Iron ore has been tipped by strategists to keep moving to the upside based on last night's move as well. 

Spot iron ore seems to have played catchup to iron ore futures, putting on 4.3 per cent. Now Dalian iron ore futures are up a further 3.2 per cent as well.

The S&P 500 materials sector actually finished marginally lower by 0.1 per cent, but the FTSE 100 materials sector closed up 0.5 per cent, which the ASX looks more likely to mirror in this instance.

There's a potential headwind the Australian market could catch wind of though, according to Asia-focused analysts. A strong Japanese yen, on a falling US dollar, is likely to put pressure on the Nikkei 225.

Although materials look to be taking the lead locally this morning, currency and oil markets were the biggest movers in the session just ended. Oil rallied close to 2 per cent in WTI terms and the US dollar came under significant pressure, losing up to 1 per cent against other major currencies. At the end of the session, surprisingly dovish minutes dropped from the US Federal Reserve from its meeting last week.

US equities traded in a tight range but ended the session lower overall. And they won't be re-opening today, given it's Thanksgiving holiday. US durable goods data was published during the session, marking a fall of 1.2 per cent in October against expectations of a 0.3 per cent rise.

Market Summary: 
IndexLastPoints ( /-)Change (%)
Dow23,526.18-64.65-0.27
S&P 5002,597.08-1.95-0.08
Nasdaq6,867.364.880.07
FTSE 1007,419.027.680.10
DAX13,015.04-152.50-1.16

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