ASX is set for a mixed start – Wall Street takes a break for Thanksgiving Day

November 25, 2021 - 1 week ago
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The stage is set for a mixed opening for the Australian sharemarket as Wall Street capped another wobbly day of trading Wednesday with an uneven finish for the three major U.S. stock indexes ahead of the Thanksgiving holiday in the U.S.

The ASX futures added +7 points or +0.1% to 7,400, while our local currency, the Australian Dollar, is currently buying US$0.7198 (as of writing).

U.S. technology companies helped push the S&P 500 and Nasdaq Composite higher Wednesday, as investors shrugged off concerns about elevated inflation.

New U.S. data showed household spending rose 1.3% in October from a month earlier, while personal income increased 0.5%, while weekly jobless claims fell sharply to the lowest level in 52 years.

At the finishing bell, on the New York Stock Exchange (NYSE), the broad-based Standard & Poor’s 500 Index gained +10.76 points, +0.2%, to close at 4,701.46, while the rich-tech Nasdaq Composite Index gained +70.09 points, or +0.4%, to end at 15,845.23.

The blue-chip Dow Jones Industrial Average, in contrast, lost -9.42 points, or less than -0.1%, to finish at 35,804.38.

U.S. stock indexes struggled to find direction after the U.S. Federal Reserve released the minutes from its October policy meeting on Wednesday.

The minutes showed that Fed officials discussed how they “would not hesitate” to take appropriate actions to address inflation pressures that posed risks to the economy.

The minutes also revealed Fed officials maintained that the spike in inflation seen this year was still likely to be transitory while acknowledging that the rise in prices had been greater than expected.

“Many participants pointed to considerations that might suggest that elevated inflation could prove more persistent,” the minutes said

Earlier this month, Fed officials confirmed plans to shrink the central bank’s monthly bond purchases.

U.S stock trading will be closed Thursday.

Meanwhile, precious metals were down, with gold falling -0.3% to $1,784 per ounce and silver losing -0.08% to $23.45 an ounce.

Oil prices were weaker, with international benchmark Brent crude falling -0.4% to $82.04 per barrel, while U.S. benchmark West Texas Intermediate lost -0.5% to $78.22 a barrel.

Iron ore prices rose +2.9% to $US102.75 a tonne, while cryptocurrencies tumbled after Bitcoin, the world’s largest cryptocurrency by market value, slipped -0.9% and traded at $US57,098.55 (as of writing).

Based on the daily technical assessment of the S&P/ASX 200 (XJO), a mixed opening is foreseen, with the resistance assessed at 7,425, with 7,455 located firmer above.

The support is considered (minor) at 7,370, with 7,345 viewed beneath. Reassess from there.

Daily outlook on the benchmark S&P/ASX 200

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