The ASX in 5: ASX hits new record highs, Tesla shares rally on Q2 earnings
We highlight five things that investors and traders need to know on Tuesday, 27 July.
Wall Street records another all-time high
Another day, another record high for US stocks, which at this pace, will likely continue to be a daily, or at least a weekly occurrence. The rally last night on Wall Street was less emphatic than what it was at the back end of last week, with breadth narrower. But it was enough to push the US 500, US Tech 100 and Wall Street to record highs, as big tech and cyclicals outperformed.
Tesla beats earnings estimates
The week ahead will be highlighted by mega-cap tech earnings, and this morning Tesla Inc was the first (electric) cab off the ranks. It managed to smash expectations, with revenues coming in at $11.96 billion, and EPS smashing the 97c estimate and coming in at $1.45. The guidance provided by the company was also a plus for investors, with management stating it still expects 50% annual growth in the vehicle deliveries moving forward. Investors clearly welcome the results, with Tesla stock rallying in after hours trade.
Real rates hit record lows, gold doesn’t budge
Bond market dynamics have left market commentators scratching their heads today, after ten-year real rates hit a record low of 1.13% overnight. The move seems to come as traders continue to discount elevated inflationary pressures, in an economic environment that may keep policy makers and the Federal Bank relatively dovish. Interestingly, gold prices have yet to respond to the historic lows in real yields. Typically highly correlated, the last time real yields were this low the spot price of gold was floating around $US2070 per ounce.
Amazon denies it’s about to adopt Bitcoin
Bitcoin (USD) bulls were given a bit to cheer about overnight, after the price of the cryptocurrency extended its surge to briefly trade above $US40,000 in US trade. The exuberance was tempered however, after a spokesperson from Amazon.com Inc (All Sessions) suggested that reports the company is preparing to adopt the cryptocurrency was false.
ASX 200
The Australia 200 has recorded another record high today, with the benchmark index another 0.5% as of mid-afternoon trade. The strength comes courtesy of a rebound in commodity prices overnight, with the energy and materials sector leading the market higher. The bullish sentiment in the market comes despite continued volatility in broader Asian stocks, as the Hong Kong HS50 and China A50 indices face further selling pressure on China’s crackdown on its private sector.
24-hour trading available on the HS50 and China A50. Learn more.
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
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.
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.
