ASX poised to open higher on US Tech Rally

Stock Markets

Australian shares are poised to open higher today on the back of a technology stock rally on Wall Street. US equities rebounded on Monday, thus marking an end to the five straight sessions of declines. Wall Street’s main indexes closed higher on Monday with technology shares leading gains, however, gains in the Dow Jones were limited by a 6.4% fall in Boeing Co following the second fatal crash of the company’s new passenger jet in just five months. The Dow Jones, S&P 500 and the NASDAQ 100 were all up overnight, gaining 200.64 (+0.79%), 40.23 (+1.47%) and 149.92 (+2.02%) points respectively.

The benchmark S&P/ASX200 index closed down 23.6 (-0.38%) points on Monday, with the energy sector leading losses following news of the world’s largest wealth fund planning to sell its stakes in oil and gas companies. Mining giant BHP was down 0.98%, Rio Tinto down 0.67%, South32 down 0.26% and Fortescue Metals down 2.31%.

ASX 200 futures are currently up 38.0 points. 

Today’s data releases: NAB business survey – conditions and confidence February, Housing finance January, RBA’s Guy Debelle speech, UK industrial production January, US NFIB small business optimism February, CPI February

Commodities and Currencies

Brent and WTI crude closed higher overnight at US$66.63 (+1.35%) and US$56.79 (+1.28%) respectively.

Iron ore prices are down 2.3% to US$83.79 per tonne.

The spot price of gold is currently marginally up 0.04% at US$1293.94.

The AUD is currently marginally up 0.11% at US70.78¢.

This article was written by William O’Loughlin – Investment Analyst, Rivkin Securities Pty Ltd. Enquiries can be made via info@rivkin.com.au or by phoning +612 8302 3633.