US tech recharge shakes off inflation fears: Aus shares to open higher

Market Reports

by Michael Luu

The ASX200 is tipped to open higher, on the back of rebounds by the Wall street benchmarks. Many US stocks were in the buy zone, as investors saw the previous steep declines as an opportunity to pick up shares. Heavyweight tech shares saw a strong recharge, as computing giants Apple and Microsoft surged over 1.5 per cent. Travel and airline stocks fueled positive sentiment, following the US CDC’s announcement that mandatory mask wearing has been waived for fully vaccinated citizens in most instances. US shareholders defied inflation expectations despite further concerning data, as producer prices in April surged over 6 per cent year on year. Asian markets were spooked by inflation concerns and tumbled on previous weak leads yesterday, giving Europe a pessimistic handover.

To the figures from around the globe

Wall Street closed higher yesterday: The Dow Jones Industrial Average gained 1.3 per cent to 34,021, the S&P 500 added 1.2 per cent to 4113 and the NASDAQ closed 0.7 per cent higher at 13,125 points.

European markets closed mixed: London’s FTSE lost 0.6 per cent, Paris added 0.1 per cent and Frankfurt closed 0.3 per cent higher.

Asian markets closed lower: Tokyo’s Nikkei dropped 2.5 per cent, Hong Kong’s Hang Seng fell 1.8 per cent while and China’s Shanghai Composite closed almost 1 per cent lower.

Taking all of this into equation, the SPI futures are pointing to 0.7 per cent gain.

Yesterday, the Australian share market closed 0.9 per cent lower at 6983.

Company news

Troubled casino giant Crown Resorts (ASX:CWN) has agreed to contribute $12.5 million to partially cover the cost of the Bergin Inquiry and commit to an annual Casino Supervisory Levy, in a new undertaking with the New South Wales Independent Liquor and Gaming Authority (ILGA). The James Packer-backed firm announced it reached agreement with the casino watchdog in several areas of its Barangaroo operations in a bid to restore its casino license in Sydney. In addition, the company has also committed to a cashless payment system for all Crown gaming facilities to prevent money laundering and criminal infiltration. The company had previously confirmed the cessation of all dealings with junket operators and closures of overseas offices, as all international projects will be coordinated from Australia. The ILGA welcomed the undertaking and recognised the significant progress Crown has made to rebuild credibility. The casino regulator is now waiting on an independent monitor’s report to decide on Crown’s casino license. Shares in Crown Resorts closed 0.4 per cent lower at $12.75 

Ex-Div

Autosports Grp Ltd (ASX:ASG) is paying 2 cents fully franked
Dicker Data Limited (ASX:DDR) is paying 9 cents fully franked
Plato Income Maximiser (ASX:PL8) is paying 0.4 cents fully franked
SSR Mining Inc (ASX:SSR) is paying 4.84 cents unfranked

Turning to currencies

One Australian Dollar at 7:40 AM was buying 77.30 US cents, 55.02 Pence Sterling, 84.59 Yen and 63.98 Euro cents.

To Commodities

Iron Ore futures suggest a 5.7 per cent fall.
Gold has added $1.20 to US$1824 an ounce.
Silver has lost $0.18 to US$27.06 an ounce.
Oil has fallen $2.26 to US$63.82 a barrel.