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ASX 200 expected to open higher, influenced by U.S market gains

EditorBrando Bricchi
Published 01/22/2024, 06:58 AM
© Reuters.
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SYDNEY - The Australian stock market is poised for a positive start, with the ASX 200 expected to open higher, taking cues from recent upward movements in U.S markets. Investors are looking at various sectors that could impact the market dynamics in the coming days.

Amidst the broader market optimism, energy stocks might face some headwinds as oil prices have seen a downturn, attributed to persistent global economic concerns. This may have a direct effect on Australian energy companies such as Beach Energy (OTC:BCHEY) and Woodside (OTC:WOPEY) Energy, which could see their share prices influenced by the declining oil market.

Contrastingly, the commodities sector could witness some gains, especially in gold, as prices have experienced an uptick. This rise in gold prices stands to benefit mining firms including Newmont Corporation and Northern Star Resources, potentially boosting their stock performance due to the increased value of their primary commodity.

In the realm of technology and resources, Arcadium Lithium has caught analysts' attention, receiving a buy rating and a notable price target. This optimism is based on the company's strategic positioning within the lucrative lithium market, which is crucial for the production of electric vehicle batteries and other high-tech applications.

Furthermore, Macquarie Technology Group has retained a buy rating from Goldman Sachs, accompanied by a significant price target. This follows the recent approval of a major data centre project, signifying confidence in the company's growth prospects and its position in the technology infrastructure sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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