With the S&P 500 and the Nasdaq both setting new records and European stocks also higher, the ASX is expected to open on a positive note.
In fact, apart from the Dow, it was a good day for several markets and the sectors that drive them.
Oil prices rose at a time when the last of the leaded petrol was eradicated.
Algeria — the last country to use leaded fuel — has exhausted its supplies with the UN Environment Program (UNEP) calling it a landmark win in the fight for cleaner air and a “huge milestone” that will save world economies over $US2.4 trillion annually.
On the downside for oil markets is the effect of Hurricane Ida, which tore through the major petroleum hub of southern Louisiana.
Heres’ what happened.
- Brent oil was up 1% to $US73.41 a barrel with concern with Investors focused on an OPEC+ meeting that could see more supply added to the crude market.
- Spot gold was trading near US$1,810 an ounce at the US close.
- Iron ore lost US$1.30 a tonne or 0.8% to US$157.75 a tonne as China's Baoshan Iron & Steel Company delivered a cautious outlook on price prospects.
- The Aussie dollar rose from lows near US72.85 cents to highs near US73.05 cents and was near US72.95 cents at the US close.
Australian market
Harvey Norman Holdings Limited (ASX:HVN) and Regis Healthcare Ltd, among others, will report today as the season winds up.
Hopefully we’ll see some decent results, with the ASX set to ride the coattails of positive global momentum.
Australia Post reported record revenues and near doubling of profit before tax, as online shopping ramped up during the pandemic.
"This strong result rests with the hard work of our people, who have continued to deliver everyday through the challenges of a pandemic and numerous lockdowns,” Australia Post's acting group chief executive Rodney Boys said.
“The strength of eCommerce – up 31.8% as Australians took to online shopping in record numbers – has supported the result, as did the temporary regulatory changes which allowed us to meet the significant parcel demand and ongoing mail delivery."
Australia Post returned dividends to the government of $46.2 million.
Regis Healthcare delivered a profit in what CEO Linda Mellors said was a highly challenging year.
Regis reported a net profit of $19.9 million for the year ended June 30 from a $0.7 million loss last year.
Shaver Shop Group Ltd is also worth noting as the demand for personal care products in lockdown increased. The group lifted its full-year profit by 68.3% and almost doubled its final dividend.
“Shaver Shop remains in an attractive and growing market segment. We have a very strong financial position and a unique multi-channel retail model,” chief executive Cameron (NYSE:CAM) Fox said.
"With our customer service focus, the exceptional product knowledge of our team, our differentiated product range and our ongoing omni-retail investments, we continue to have confidence in Shaver Shop’s future outlook.”
Australian indices
- ASX 200 lifted 0.22% to 7,504.50
- ASX24 futures rose 0.2% to 7,460
- S&P/ASX Small Ordinaries was up 0.80% to 3,534.30
- All ordinaries rose 0.37% to 7,788.60.
US markets
While Federal Reserve boss Jerome Powell didn’t give too much away in his speech on Friday, he did indicate the central bank would be cautious in winding down its monetary policy and was in no hurry to lift interest rates.
Powell said the US economy was on the road to recovery and noted that “it could be appropriate to start reducing the pace of asset purchases this year”.
“As widely expected, Fed Chair Powell’s Jackson Hole speech did not provide a definitive answer to the … tapering decision,” said National Australia Bank’s Rodrigo Catril.
“But his dovish undertones on his views on inflation as well as the emphasis on decoupling the rate hike decision from … tapering resulted in a risk positive market reaction.”
US indices
- Dow Jones fell 0.2% to 35,399.84.
- S&P 500 rose 0.4% to 4,528.79.
- Nasdaq was up 0.9% to 15,265.89.
European markets
The European Commission’s economic confidence index eased to 117.5 in August from an all-time high of 119.0 in July.
Meanwhile, London Stock Exchange was closed for a summer bank holiday.
Overall, European markets were higher.
European indices
- STOXX 600 rose 0.072% to 472.68.
- German Dax rose 0.2% to 15,887.31.
- UK FTSE remains at 7148.01 with markets closed.