ASX to rise as Wall Street rebounds, snapping a two-day bearish streak

August 4, 2022 - 2 weeks ago

The Australian share market is set for a positive start to the day as U.S. stocks closed higher on Wall Street Wednesday as investors welcomed economic data and quarterly earnings reports.

The ASX futures rose +32 points, or +0.47%, to 6,893, while our local currency, the Australian Dollar, is currently buying US$0.6948 (as of writing).

U.S. technology, retailers and communications companies were some of the biggest gainers, while the energy sector stocks tumbled as oil prices tumbled on Wednesday.

At the finishing bell on the New York Stock Exchange (NYSE), the blue-chip Dow Jones Industrial Average climbed +416.33 points, or +1.3%, to 32,812.50.

The broad-based Standard & Poor’s 500 Index added +63.98 points, or +1.6%, to 4,155.17, while the rich-tech Nasdaq Composite Index gained +319.40 points, or +2.6%, to 12,668.16.

This Thursday, the Bank of England is widely expected to hike rates by half a percentage point (50 basis points) to 1.75% from 1.25%, while on Friday, we get an update on the U.S. Non-Farm Payrolls report.

The U.S. Labour Department’s jobs report is expected to show whether employers kept hiring in July after 372,000 jobs were added in June, with the forecast currently holding at 250,000, and the unemployment rate is expected to hold steady at a historic low of 3.6%.

The US dollar index (US DXY), which tracks the greenback against a basket of its peers, added +0.4% to 106.28.

Precious metals were firmer, with spot gold rising by +0.5% to $1,766 and silver added +0.8% to $20.02.

Oil prices fell as OPEC+ oil producers agreed to lift the output by 100,000 barrels per day.

The global oil benchmark Brent crude was at $96.78 per barrel for a -3.7% loss, while U.S. benchmark West Texas Intermediate (WTI) was at $90.66 — down -4%.

Iron ore prices were down -3.8% to US$110.38 a tonne, while cryptocurrencies Bitcoin, the world’s largest cryptocurrency by market value, rose by +0.08% and is trading at US$22,950.00 (as of writing).

Based on the daily technical assessment of the S&P/ASX 200 (XJO), a firmer opening is foreseen, with the intraday resistance at 7,020 minor, with 7,050 seen above. Reassess from there.

Assessing the downside, the support is observed at 6,965 minor, with 6,910-15 located beneath. Reassess from there.

Daily outlook on the benchmark S&P/ASX 200