Lack of direction from overseas with Europe closed and US mixed

Published at May 2, 2017, in Equities

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 Amazon.com 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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