The ASX in 5: Stocks rebound after Delta scare
We highlight five things that investors and traders need to know on Wednesday, 21 July.
US investors buy-the-dip
After yesterday’s swoon for global stock markets on growing concerns about the Delta variant’s spread, US investors have used the opportunity to “buy-the-dip”. The S&P500 rallied 1.52% overnight, led by a bounce in cyclical stocks, as the index rebounded off key support around its 50-day moving average.
Oil prices recover
Oil prices also found buyers after Monday’s nearly 7% drop, but the move did little to compensate for the full extent of the sell-off. Focus in energy markets has shifted from the supply side, to future demand fears, after OPEC+ members managed to agree to a 400,000 barrel per day increase in production over the weekend.
Australian retail sales contract
Australian retail sales data showed a major contraction in retail consumption in the economy last month, dropping -1.8%. Commenting on the move, Ben James, Director of Quarterly Economy Wide Surveys, said: "June’s fall in turnover was due to the impact of coronavirus restrictions across multiple states..."
Australian Dollar remains under pressure
The Australian Dollar remains one of the G10’s major underperformers, as diminished risk appetite in global markets, as well as the COVID-19 related lock downs in New South Wales and Victoria, cloud the outlook for the Australian economy. The AUD/USD test the 73 cent level in US trade overnight, as markets bet on delayed policy tapering from the RBA.
ASX 200 rises, but falls from day’s highs
The ASX 200 has followed Wall Street’s overnight lead, to have surged above the 7300 level again. The index has dropped from its intraday highs however, as volatility remains relatively elevated. The gains have been underpinned by a broad-based rally for the index, with 10 out of 11 sectors currently trading in positive territory.
Do you have a view on the markets? Whatever you think, you can use CFDs to trade stocks and other assets, through IG’s world-class trading platform.
For example, to buy (long) or sell (short) a variety of local and international stocks using CFDs, follow these easy steps:
- Create an IG Trading Account or log in to your existing account
- Enter <Company name> in the search bar and select it
- Choose your position size
- Click on ‘buy’ or ‘sell’ in the deal ticket
- Confirm the trade
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
Please see important Research Disclaimer.
Live prices on most popular markets
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.