Crude bounces back: ASX tipped for modest gain

Market Reports

by Jessica Amir

US stocks have closed mostly flat after crude oil prices rebounded from a sharp two-day sell off. As result, the ASX200 can expect a lukewarm start for this Friday, with the SPI tipping a modest single digit rise. 

The US health care space jumped more than 1 per cent as investors eagerly awaited the Senate’s health care bill, aimed at repealing and replacing Obamacare. The Senate is tipped to vote on the bill next week.

Despite health care propping up the S&P500, financials dragged down the index.

The tech heavy Nasdaq meantime firmed a two-day winning streak, while the Dow Jones closed about 10 points lower.

US economic news

The US Conference Board’s leading economic index rose 0.3 per cent to 127 in May. It didn’t come as a surprise to economists, but it’s the fifth consecutive monthly rise

The Conference Board says the index suggests the economy is ‘likely to remain on or even moderately above its long-term trend of about 2 per cent growth for the remainder of the year’.


Wall Street closed mostly flat on Thursday: The Dow Jones Industrial Average lost 0.1 per cent to close at 21,397, the S&P 500 slipped 0.1 per cent to close at 2,435 and the NASDAQ rose 0.04 per cent to close at 6,237.

European markets closed mixed: London’s FTSE fell 0.1 per cent, Paris gained 0.2 per cent and Frankfurt gained 0.2 per cent.

Asian markets closed lower: Tokyo’s Nikkei fell 0.1 per cent, Hong Kong’s Hang Seng slipped 0.1 per cent, and China’s Shanghai Composite lost 0.3 per cent.

And back home, the Australian share market closed higher on Thursday: At the closing bell, The S&P/ASX 200 Index closed 40 points higher or 0.7 per cent to finish at 5,706. On the futures market the SPI is 7 points up.

Company news

Bellamy’s Australia Limited (ASX:BAL) has announced its company secretary has resigned. The baby food company says Brian Green resigned with effect from yesterday (22 June 2017). Melinda Harrison was appointed as company secretary on 5 May 2017 and will continue in the role. Shares in Bellamy’s Australia Limited (ASX:BAL) last traded 3.92 per cent higher to $7.42.


One company is going ex-dividend today and that is Aberdeen Leaders (ASX:ALR) is paying 2 cents fully franked.


The Australian Dollar at 7:30AM was buying 75.42 US cents, 59.48 Pence Sterling, 83.95 Yen and 67.64 Euro cents.


Gold has gained $5.40 to $US1,251 an ounce.
Silver has firmed 14 cents higher to $US16.57 an ounce.
And Oil has gained 25 cents to $US42.78 a barrel.


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