CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

ASX200 hits new post pandemic high and flirts with the 7000 level

Asian stock indices mixed, but European and US futures perk-up, ASX200 hits new post pandemic high and flirts with the 7000 level and the US Dollar and UST yields remain at a cross roads; USD/JPY dips.

Although price action in Asian markets has been a little mixed, a general skew towards risk-taking in the region, seemingly underpinned by a pick-up in US and European futures, is injecting a little life into what’s been an otherwise stale for week for financial markets.

Our prices are indicating a reasonably solid jump at the open for both European and US indices – of course, implying a new record high for the US 500 tonight.

Any sort of new flow has been lacking again today – at least in terms of any news that moves markets. The typical narratives are being rolled out, but prices are seemingly moving without much explicit impetus at all.

Clearly, the path of least resistance for stock remains to the upside. While a slight pro-growth skew in FX markets and a lack of bond market volatility is also implying an overall bullish bias in the markets.

The ASX200 has once again been an outperformer today

With the index’s 0.9 per cent rally – at time of writing – pushing it outside of its multi-month range and to new post pandemic highs. The index has also traded above the 7000 level for a period, for the first time since late February 2020. It’s been, perhaps as one might imagine given the breakout, a relatively broad-based rally for the ASX200.

10 of 11 sectors are trading into positive territory currently, paced by large-cap stocks, especially amongst the telecommunications, materials and financials sector, with the defensive utilities sector the only to sustain a modest loss.

In the FX space in particular, the AUD/USD continues to chop about, as the debate continues about trends in US Treasury yields, with some sticking to their guns that some sort of correction in Treasury yields is due. The US Dollar Index remains at something of a crossroads, as the recent stabilization in bond market volatility is yet to be met by buying of pro-cyclical or reflation currencies.

The USD/JPY has extended slightly its recent dip, as a reversal in yields spreads, combined with signs of rollover in price momentum, keeping the pair the purest FX play on US Treasury yield dynamics.

Market participants approach what shapes as another light night for event risk. US Fed Chair Jerome Powell will appear at a virtual conference and address the global growth recovery, while weekly jobless claims numbers will garner some attention.

The key issue, at least to kick-off the overnight session, might just be however whether this nascent bullish impulse manifesting in US and European futures really has legs, or whether we’ll see another lacklustre and low volatility night’s trade tonight.

Want to trade with IG?

Create an IG trading account or log in to your existing account to get started now.

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Seize your opportunity

Deal on the world’s stock indices today.

  • Trade on rising or falling markets
  • Get one-point spreads on the FTSE 100
  • Unrivalled 24-hour pricing

See opportunity on an index?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on an index?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from one point on the FTSE 100
  • Trade more 24-hour indices than any other provider
  • Analyse and deal seamlessly on smart, fast charts

See opportunity on an index?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.