Saxo Asia Pacific Senior Sales Trader Junvum Kim says the ASX 200 index was a standout this morning (15 July 2024), reaching 8,000 for the first time.
“The ASX 200 stands out with the second highest dividend yield (a trailing 12-month yield of 3.65%) and P/E ratio among major Asian indices,” Kim says.
“However, its year-to-date return of 7.4% pales in comparison to the Japanese Nikkei 225’s substantial 24% rise, (and) it has taken 4.5 years for the ASX 200 to rise from 7,000 to 8,000.”
In Saxo’s Global Market Quick Take for Asia for 15 July 2024 some commodities declined over the two-day period since market close on 12 July.
As of market close on 12 July, gold prices slipped by 0.17% to US$2,420.70 and the silver price declined 2.15% to US$30.79, despite their third consecutive weekly gain overall.
Prior to the attempted assassination on presidential candidate and former president Donald Trump, investor confidence has been growing amid the US Federal Reserve’s potential interest rate cuts.
According to Saxo, WTI crude oil futures declined by 0.5%, to close at US$82.21 per barrel, ending a two-day winning streak and marking a 1.14% decrease for the week. Brent Crude futures also fell, settling at US$85.03 per barrel, down 0.43%. Natural gas saw a late-week rebound, finishing up 0.43% for the week at US$2.329.
US stock index futures steadied in evening deals on Sunday as speculation mounted over whether the attack on Trump improved his chances of election success, as per Investing.com.
Uncertainty over the US political situation has reportedly kept risk appetite largely in check, as investors also await upcoming key corporate earnings in the coming days, as the Q2 earnings season begins in earnest.
Meanwhile, equity markets demonstrated strong resilience on Friday, erasing most of Thursday’s losses and closing the week higher, Saxo reports.
The Russell 2000 Smallcap Index, benefiting from Thursday’s tech selloff with a 3.5% rise, continued its upward trajectory, ending the week 5% higher. The S&P 500 and Nasdaq also showed sustained strength as investors capitalised on the brief decline in large-cap tech stocks.
According to Saxo, geopolitical developments, particularly the attack on Trump, may prompt safe-haven flows in Asian markets.
“Early indications show the USD slightly higher, while S&P 500 futures remain flat,” Saxo reports.
Write to Adam Orlando at Mining.com.au
Images: Saxo
