Australian shares are poised to edge higher on Friday as U.S. stock benchmarks on Wall Street rallied on Thursday, giving the S&P 500 its best day in seven weeks as the market recouped some of its losses after several days of volatile trading.
The ASX futures advanced +60 points or +0.8% to 7,278, while our local currency, the Australian Dollar, is currently buying US$0.7090 (as of writing).
The market rebound comes as investors gauge the amount of damage the Omicron COVID-19 variant might inflict on the economy.
At the finishing bell, on the New York Stock Exchange (NYSE), the blue-chip Dow Jones Industrial Average rallied +617.75 points, or +1.82%, to 34,639.79, the largest one-day point gain since early November.
The broad-based Standard & Poor’s 500 Index climbed +64.06 points, or +1.42%, to 4,577.10, while the rich-tech Nasdaq Composite Index added +127.27 points, or +0.83%, to 15,381.32.
On Thursday, traders focused on comments from the World Health Organization’s chief scientist suggesting vaccines were likely to still offer some protection.
Precious metals were weaker, with gold falling -1.1% to $1,769 an ounce, but silver lost -0.9% to $22.20.
Oil prices rallied, with Brent crude rising +0.6% to $69.29 per barrel and U.S. benchmark West Texas Intermediate crude climbed +1.2% to $67.26.
Iron ore prices fell -2.7% to US$101.62 a tonne, while cryptocurrencies tumbled after Bitcoin, the world’s largest cryptocurrency by market value, slipped -0.2% and is trading at US$56,865.10 (as of writing).
Based on the daily technical assessment of the S&P/ASX 200 (XJO), a firmer opening is foreseen, with the resistance assessed from 7,280 (minor), with 7,315 located firmer above. Reassess from there.
The support is located at 7,245 (minor), with 7,190 lower.
Daily outlook on the benchmark S&P/ASX 200