ASX 200 Index: holding in familiar territory, bid on commodities

• Commodities are performing well, supporting the ASX 200 Index.
• NWH is the strongest (+8.47%) and DMP is the Weakest (-5.38%). 

After a flat start in the Australian share markets on the heels of a mixed session on Wall Street, more on that here, the S&P/ASX200 benchmark index is ring 0.5% as the session progresses with a bid in oil and commodities hanging tough. ASX200 is currently trading at 5,236 between a range of 5,207 and 5,254. As for the company performers, NWH is the strongest (+8.47%) and DMP is the Weakest (-5.38%). 

Commodities in focus

The CRB Index is +2.15%, supported in a rally of oil. Signs of further production cuts helped push crude oil prices higher:

"Kuwait said that it had already started cutting production ahead of the planned 1 May start of the recent OPEC+ supply agreement. Algeria also told OPEC it would be cutting immediately. This follows data showing US production is beginning to fall.," analysts at ANZ bank explained. WTI is currently trading +2% at $17.44bbls

"In its weekly report, EIA data showed total production had fallen to 12.2mb/d, the lowest level in the weekly data series since July 2019. We calculate that the number of drill rigs active in the US is now well below that required to maintain production. This will see a natural decline in US output in the weeks and months ahead."

Meanwhile, the base metals sector was mixed amid a barrage of weak economic data overnight. US Composite PMI fell to 27.4 from 40.9. Services fell to 27.0 from 39.8 and manufacturing fell to 36.9 from 48.5.

Copper had found some support on South American producers being forced to shut or operating at limited capacity. "Alcoa said it would shut its remaining aluminium production capacity in the US. This follows signs of slowing in Chinese aluminium output," analysts at ANZ Bank explained. 

On a sour note, Chinese trial showed Gilead Science's remdesivir did not improve patients' condition or reduce the pathogen's presence in the bloodstream. Gilead said the results from the study were inconclusive as it was terminated early. However, its share price plummeted and is down -4%

• AUD/USD: Pullback from 12-day top pauses above 0.6350 amid risk reset

ASX 200 Index: trades between 38.2% & 23.6% Fibo

The ASX 200 was capped by the  38.2% Fibonacci level (5470) at the start of this week. To the downside, 5100 has so far held, a touch away from 5090s target within the current support structure which bulls will seek to hold for confirmation of a run towards 5645 as the next resistance structure through prior highs. On a continuation to the downside, bears will be looking for an extension below the COVID-19 lows of 4402.