A brighter start for the ASX as Wall Street powered by good earnings

October 15, 2021 - 1 week ago
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The Australian share market is expected to open higher, as U.S. stocks surged after a magical alignment of better-than-expected earnings and economic data drove U.S. equities higher, with the S&P 500 giving its best performance in more than seventh months.

The ASX futures climbed +47 points, or +0.6%, 7,336, while our local currency, the Australian Dollar, is currently buying US$0.7414 (as of writing).

Every S&P 500 company that reported earnings so far this week has exceeded Wall Street’s forecasts.

At the finishing bell, on the New York Stock Exchange (NYSE), the blue-chip Dow Jones Industrial Average surged +534.75 points, or +1.56%, to end at 34,912.56.

The broad-based Standard & Poor’s 500 Index rallied +74.43 points, or +1.71%, to finish at 4,438.23, marking the benchmark index’s largest one-day percentage gain since March 5.

The rich-tech Nasdaq Composite Index gained +251.8 points, or +1.73%, to 14,823.4.

In bond markets, where yields fall when bond prices rise, the yield on the 10-year Treasury note ticked down to 1.519% Thursday, from 1.549% Wednesday, providing some relief to growth and technology stocks.

Economic data was also brighter after the U.S. jobless claims for the week ended Oct. 9 fell to 293,000 from 329,000 the week prior—the first time they have fallen below 300,000 since the pandemic era.

Spot gold added +0.2% to $US1,795.00/oz, while in other markets, West Texas Intermediate crude rose +0.9% to $80.90 per barrel, and Brent oil, oil’s international benchmark, climbed +0.9% to $83.94.

Meanwhile, iron ore prices rose +1.4% to $US125.91 a tonne, while Bitcoin was gained +0.9% to $US57,755.00 (as of writing).

Based on the daily technical assessment, a firmer open is anticipated, with the immediate resistance considered at 7,345 (minor), with 7,375 located above. Reassess from there, while the support is considered at 7,280, with 7,220-25 assessed beneath.

Daily outlook on the benchmark S&P/ASX 200

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