S&P 500, Dow Jones closes on record high ahead of earnings season: ASX to edge higher


The Australian share market is set to rise following Wall St ending in the black. Technology shares powered the indexes with the Dow Jones and the S&P 500 closing the session at record high. Both indexes extended gains for the third week in a row. Around the globe, European markets continued their winning streak, while in Asia indexes closed mostly lower. These moves come on the back of the increased pace of the vaccine rollout, the US stimulus at play amid mostly positive economic data. Last week we also saw the US Central Bank give their reassurance on keeping interest rates low with continued bond buying for the foreseeable future. Officials said that changes will happen once outcomes are achieved rather than forecasts in employment and inflation. Treasury yields dropped as investors buy back into growth and technology stocks that benefit in a low rate environment. Gold price fell, oil prices edged lower while the Aussie dollar rose against the falling greenback.

Global markets

The Dow Jones Industrial Average gained 0.9 per cent to close at 33,801, the S&P 500 added 0.8 per cent to close at 4,129 and the NASDAQ closed 0.5 per cent higher at 13,900.

London’s fell 0.4 per cent, Paris gained 0.1 per cent and Frankfurt closed 0.2 per cent higher.

Tokyo’s Nikkei gained 0.2 per cent, Hong Kong’s Hang Seng fell 1.1 per cent and China’s Shanghai Composite closed 0.9 per cent lower.

ASX 200

The local market closed 2.4 per cent higher over the week to a new bull-market high of 6,995 led by technology, materials and consumer discretionary shares.

Today our SPI futures are pointing to 0.1 per cent gain.

Local economic news outlook

On Tuesday and Wednesday, consumer and business confidence figures are scheduled from ANZ-Roy Morgan, NAB and Westpac. It's expected by analysts to show continuing sentiment strength. Business conditions and confidence are at multi-year high’s creating increased hiring and capital spending which assists in economic recovery.

On Wednesday, building activity for the December quarter is set to be released from the Australian Bureau of Statistics.

On Thursday, unemployment data for March is on the agenda from the ABS through their Labour Force report. It is expected that the unemployment rate could drop from 5.8 to 5.7 per cent with another 35,000 jobs added to the economy. The Melbourne Institute will also be releasing their consumer inflation report.

Overseas economic news

There are a number of economic figures to be released in the US and in China.

Earnings reporting season for the March quarter starts in the US. Analysts expect it to be a positive catalyst for shares to rise.

IPOs

There are five companies penciled in to make their debut on the ASX this week. Keep an eye out today for renewable electricity company Delorean Corporation. Tomorrow, Island Pharmaceuticals is scheduled, this company focuses on preventative treatment of mosquito borne diseases. On Wednesday and Thursday, mining and gold exploration companies are set to take the spotlight, 92 Energy, Iceni Gold and Black Canyon.

Ex-Dividends

Brickworks Limited (ASX:BKW) is paying 21 cents full franked
CTI Logistics (ASX:CLX) is paying 2 cents fully franked

Currencies

One Australian Dollar at 7:05 AM was buying 76.29 US cents, 55.66 Pence Sterling, 83.70 Yen and 64.12 Euro cents.

Commodities

Iron Ore has gained 0.3 per cent to US$173.54.
Iron Ore futures suggest a 0.6 per cent gain.
Gold was down $13.40 to US$1745 an ounce.
Silver has lost $0.26 to US$25.32 an ounce.
Oil was down $0.28 to US$59.32 a barrel. 

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