Lack of direction from overseas with Europe closed and US mixed

By Trevor Hoey. Published at May 2, 2017, in Features

Australian markets are likely to run their own race on Tuesday with a lack of leads from overseas as major European markets were closed, including the London Metals Exchange, and there was a lack of direction from the US.

While the Dow declined 0.1% to close at 20,913 points, it was a day of ups and downs where at one stage the index hit a high of 20,976 points.

By comparison, the NASDAQ was unerring in marching to another record high of 6100 points before closing at 6091 points, representing an increase of 0.7%.

Strong performances from Apple Inc., Netflix Inc. and Inc. drove the index higher.

On the commodities front, both oil and gold took a tumble, falling 1.2% and 0.8% respectively.

This sees oil back below the US$49 per barrel mark.

The fall in the gold price was also significant in that the close of US$1257 per ounce represented a three-week low, bringing it back to a point that appeared to be a level of support prior to surging on the back of safe haven buying in mid-April.

Consequently, technical analysts could see a break below US$1250 per ounce as the forerunner to revisiting the US$1200 per ounce mark.

The Australian dollar is fetching just over US$0.75, having rallied strongly from US$0.745 last week. However analysts still aren’t ruling out the possibility of it finding a level in the vicinity of US$0.72 in the not too distant future.

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