The ASX 200 added 0.4% to close at 7,531.9 on Wednesday, with the mining and banking titans leading the way and tech shares also strong.
However, we could see a reversal of fortune this morning with Australian stocks set to edge lower despite Wall Street again moving into record territory.
- The SPI futures index was down 0.2% early this morning.
- The Australian dollar was higher at US72.76c.
- Iron ore was up 0.6% to $US149.45 a tonne, as better prospects for additional stimulus in China buoyed the outlook for steel demand.
- Brent oil was 1.7% higher at $US72.25 a barrel.
- Lead and tin were both up by 0.7%.
- Copper fell 0.2% - its first loss in four trading sessions as US treasury yields advanced and concerns over the COVID-19 Delta variant simmered.
- Spot gold was trading near US$1,790 an ounce at the US close.
Australian market
Qantas Airways (ASX:QAN) Limited crashed back down to earth posting a $2.35 billion loss. Interestingly, it’s an improvement on last year’s $2.7 billion loss.
The loss is attributable to a $16 billion revenue decline due to 330 days of domestic travel restrictions.
The good news was Qantas was able to reduce its total debt from a high of $6.4 billion in February to $5.9 billion in June.
However, as reported yesterday, the airline is confident a turnaround is just around the corner.
While Qantas was downbeat, if you own shares in WiseTech Global Ltd, Medibank Private Ltd (ASX:MPL) and Orocobre Limited (ASX:ORE), you’d be happy with your purchase.
WiseTech’s results were so strong that Bell Potter analyst Chris Savage increased his target price 51% to $47.50 while keeping his Hold rating. WTC closed up 29% at $46.50 after rising 59% intraday to a record high of $57.31.
Today, 20 of the top 200 companies will report earnings.
We can expect to see earnings results from Woolworths Group Ltd (which is rewarding shareholders with a $2 billion buyback), Flight Centre Travel Group Ltd, Whitehaven Coal Ltd and Eagers Automotive Ltd, among others.
Australian indices
- ASX 200 rose 0.4% to 7,531.90.
- ASX24 futures dipped 0.2% to 7,458.
- S&P/ASX Small Ordinaries rose 0.90% to 3,549.40.
- All ordinaries dipped 0.54% to 7,805.40.
US markets
It was another record-breaking day on Wall Street on Wednesday with indices closed at record highs again.
There is confidence among traders that the worst of COVID-19 is over.
“The rebound for stocks has come amid cooling concerns about the global spread of the Delta variant, as data suggests cases may be peaking and as the (US Food and Drug Administration) fully approved a coronavirus vaccine this week,” analysts from Charles Schwab (NYSE:SCHW) investment bank said.
The positive market sentiment can also be put down to an uptick in bond yields, which pushed bank stocks higher.
US indices
- Dow Jones rose 0.1% to 35,405.50.
- S&P 500 rose by 0.2% to 4,496.19.
- Nasdaq rose 0.2% to 15,041.86.
European markets
Markets continued to be mixed in Europe. European eyes, as with the US, are on the Federal Reserve’s Jackson Hole symposium, where an announcement will be made about easing.
Meanwhile, German business morale is down, the Ifo Institute’s business climate index came in at 99.4, below a Reuters consensus forecast of 100.4 and down from a revised 100.7 in July.
It was good news in the UK, where retailers reported the sharpest increase in spending for almost seven years, despite inventories falling to the lowest levels on record.
European indices
- STOXX 600 rose 0.011% to 471.84.
- German Dax fell 0.3% to 15,860.66.
- UK FTSE rose 0.3% to 7,150.12.