ASX to Start Positive on Wednesday as Wall Street Gains Lift Market Sentiment
While the US markets enjoyed some solid gains and commodities were trading higher boosting investor sentiment, futures for the ASX 200 are pointing to a positive open Wednesday. Key Highlights ASX to be positive…
While the US markets enjoyed some solid gains and commodities were trading higher boosting investor sentiment, futures for the ASX 200 are pointing to a positive open Wednesday.
Key Highlights
- ASX to be positive on Wednesday
- Tech stocks led up-incline overnight in Wall Street
- Higher oil prices could provide a tailwind to ASX energy stocks
- Higher gold prices lifted sentiment in the mining sector.
ASX to Rise on Wednesday
ASX 200 to start Wednesday on a front foot after stronger US stock markets overnight. The benchmark index is expected to open about 37 points, or 0.4%, higher on SPI futures
That comes after the ASX 200 closed lower at 8,724.4 points on Tuesday after a volatile trading day. HPG said investors hope that a stronger global sentiment would help the local market recover. The Dow Jones gained 0.45℅, and the S&P500 and Nasdaq closed in positive territory as investors continued investing in TMT (Technology, Media and Telecommunication) and AI sectors.
Oil and gold prices are predicted to rise
Strong commodity prices are also anticipated to lift parts of the Australian share market over Wednesday's session. Overnight, oil prices rose on rising geopolitical tension between the US and Iran.
A barrel of WTI crude oil traded up 1.5 per cent to US$93.54 and a barrel of Brent crude climbed 0.9 per cent to US$95.87 per barrel respectively; It could be a boon for ASX energy companies such as Beach Energy and Santos.
In other overnight moves, gold prices rallied too and may have helped improve sentiment towards the mining sector. If gold holds firm, ASX-listed gold producers including Newmont and Northern Star Resources may also garner interest from investors.
Broker Ratings Remain Positive & AI Optimism Close to Best
Wednesday trading could also see some influence from broker activity with 4DMedical upgraded to a speculative buy at Bell Potter, and $6.00 price target in place. The broker cited positive clinical data and a promising market in tech for diagnosing pulmonary embolism.
Bell Potter also maintained its hold rating on GrainCorp but cut its target to $5.20, citing dry weather forecasts and deteriorating crop production expectations. With further gains among AI-related companies overseas, investor sentiment toward technology stocks also remained supportive over the ASX as a whole.
FAQs
- How high could the ASX 200 be set to open?
SPI futures are indicating the index may gain roughly 37 points or 0.4%
- Which sectors should do well today?
Positive for energy, mining and technology sectors.
- Who are the target stocks today?
Key stocks in focus include Beach Energy, Santos, 4DMedical, GrainCorp and Northern Star Resources
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