The ASX Today
The ASX is expected to open higher on a positive lead from US sharemarkets where the S&P 500 closed at a record level.
The ASX is expected to open higher on a positive lead from US sharemarkets.
ASX SPI 200 Futures traders have added 13 points to the index. Mining and energy stocks were bought up overseas overnight as prices recovered across spot markets. However, US sharemarket volumes were relatively poor so leads somewhat lack substance.
Energy stocks were the best performers on the S&P 500 after the closure of a North Sea pipeline drove Brent and WTI sharply higher. The closure of the Forties Pipeline System, a key export terminal in Scotland which pumps around 400,000 barrels a day, was taken down after a crack was found in the system.
Earlier this morning, WTI was at $US57.99, up 1.1 per cent, while Brent was up 2.1 per cent at $US64.73 — and both were moving fast.
Copper is up half a per cent and base metals have made moves to the upside. Gold is still stuck in the $US1240s, lacking catalysts for a meaningful move in either direction.
- NAB business conditions survey released, potential event risk for the market
- Energy stocks look ready to kick higher on sharp lifts in WTI and Brent crude prices
- Miners could take positive leads from iron ore, steel and coking coal futures markets
- Home price index from the ABS published
- Credit/debit card lending data published
- Consumer confidence data released
Chinese equities slumped yesterday on the back of reports that authorities had uncovered data manipulation and fake borrowing, as part of the Government crackdown.
Despite equities overall losing out, iron ore has been rallying on news of a crackdown on pollution and inferior-grade commodities in recent weeks. Its spot price rose by just US60c, or 0.9 per cent, but futures are looking far more positive.
Base metal prices rose from 0.4-2.6 per cent on the London Metal Exchange with nickel up the most, and aluminium the least. Tin bucked the trend, losing 0.2 per cent.
BHP's ADR suggests the stock should open around 1.3 per cent higher, boding well for the entire sector.
Miners, in general, look set to be among the biggest gainers on the ASX today. However, they were in a similar predicament yesterday morning, where spot prices and SPI Futures looked very promising, but that didn't translate to substantial gains on the physical index.
Banks are once again lacking a catalyst today, and much of the moves in the US overnight took place in the tech sector, which is very noticeably absent from the local market.
The Australian dollar is buying US75.3c.
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