The ASX 200 is taking off after Wall Street where the Dow and S&P 500 managed to claw back Friday losses.
Sectors linked to the economic reopening are performing well, including energy, consumer staples and travel. This follows commentary from White House Chief Medical Advisor Dr. Anthony Fuaci who said “although it’s too early to make any definitive statements about it, thus far it does not look like there’s a great degree of severity to it.”
Airlines and travel stocks have topped the leaderboards on Tuesday following a strong performance in US-listed peers and Dr Fauci’s comments. Qantas Airways (QAN) is up 4.2%. Flight Centre (FLT), Webjet (WEB) and Corporate Travel (CTD) have rallied between 3% to 5% at open.
EFTPOs terminals provider Tyro Payments (TYR) has advanced 6.3%. This follows a shocking -30% decline since the beginning of November. Tyro has provided weekly transaction value updates to provide transparency as to the impact of covid on its operations. This week’s update for December to 3 December (date-on-date) revealed a 55% increase in transaction values.
Beaten up bookmaker PointsBet (PBH) has posted a 5.1% gain following a similar rebound for its US-listed peers. PointsBet’s international competitors Penn National Gaming, Rush Street Interactive, Flutter Entertainment and DraftKings rallied between 5% and 8% in overnight trade.
BHP Group (BHP), Rio Tinto (RIO) and Fortescue (FMG) are down about -1% at open despite the US materials sector closing 1.55% higher. The US-listed counterparts of BHP and Rio Tinto also closed 2.4% and 1.2% higher respectively overnight.
Emerging integrated rare earths producer Australian Strategic Metals (ASM) opened 5.9% higher before a flurry of selling activity drove it -8.1% lower. The company released optimisation study results for its Dubbo Project in Western Australia. The optimisation work confirmed “strong financial results” for the project and a strong ‘go forward case’ for its development.
Finance Writer & Social Media
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