Marking its second consecutive session of declines, the ASX200 ended the day down just 7 points at 8,413.90 points as the Energy sector weighed on the market.
- The 17-day strike at Woolworths distribution centres in NSW and Victoria has wiped out $140 million in sales, up from the initial $50 million estimate provided last week. This presents an opportunity for Coles, which is opening extra checkouts and ordering more from suppliers to meet the increased demand.
- The Star Entertainment Group hit a record low today after it delivered an update on its Gold Coast operations to investors after market close on Friday. The Queensland Government has deferred the 90-day suspension of The Star Gold Coast casino licence to March 31, from an earlier deadline of December.
- ANZ lost more than 3% today on news that Nuno Mato will replace retiring CEO Shane Elliot in July 2025.
Traders bet on Tesla (NASDAQ:TSLA) shares rising
Coming to us from moomoo Australia, market strategist Jessica Amir dives into US market movements and Tesla's future.
"US stocks have again hit record highs as jobs data gave investors confidence the US Federal Reserve will cut rates next week at its December 17-18 meeting," Amir writes.
"Traders are now betting there's an 85% chance of a cut. That’s great news for investors, as further evidence emerges that consumption is strong.
"A US consumer-sentiment indicator rose to its highest level since April and online retail spending after Black Friday rose almost 8% in the week. That optimism drove the S&P 500 to its 57th record closing high for the year.
"The index is now up almost 30% in 2024, marking its best gain since 2019.
"Tesla was a star performer. Its shares rose 5.3% to US$389.22.
"I’ve been speaking about Tesla being a pin-up stock that seems to benefit from the relationship between incoming US president Donald Trump and the carmaker's chief executive officer, Elon Musk. With Musk heading up the 'Department of Government Efficiency' (DOGE).
"What’s really telling is that options traders are betting Tesla shares could be worth more than US$400 by December 20. There are a smaller amount of bets for Tesla reaching US$440. If that happens, it will be a nice early Christmas present, implying a 13% gain from Friday’s close.
"Meanwhile, we're seeing buying into the safe havens of the US dollar and gold, which pushed both higher. Investors are seeking potential protection should there be a resurgence of Islamic extremism.
"US President Joe Biden warned this could happen as the US conducted airstrikes on ISIS targets in Syria, after Bashar al-Assad was ousted.
"What else to watch? The Aussie sharemarket is expected to open slightly lower, pressured by the higher US dollar and lower metal prices.
"Oil prices are down 1.6%, the third day of losses, as OPEC+ is forecasting an oversupply in 2025 and decided not to go ahead with the production increase.
"It’s a blackout period this week, ahead of the Fed's rate decision, meaning Fed speakers won’t be talking to the public about economic issues or about interest rates. So the sharemarket will take its lead from broader issues, as well as company announcements."
Small cap moves
Cobalt Blue Holdings Ltd (ASX:COB, OTC:CBBHF) was as much as 14.71% higher to $0.078 after announcing an MOU with Mt Isa City Council in Northwest Queensland to assess a sulphuric acid supply strategy for the region while Magnetite Mines Ltd (ASX:MGT) reached $0.165, an increase of 13.8% on the previous close.
Other small cap risers were Livium Ltd (ASX:LIT, OTC:LMMFF), up as much as 11.8% to $0.019, Prescient Therapeutics Ltd (ASX:PTX, OTC:PSTTF) reached $0.045, an increase of 9.76%, Sprintex Ltd (ASX:SIX) rose by 9.62% to $0.057, Dynamic Metals Ltd (ASX:DYM) was 6.98% higher to $0.23, Nova Minerals Ltd (ASX:NVA, NASDAQ:NVA) hit $0.255, a lift of 6.25%, and Recce Pharmaceticals Ltd increased 5.32% to a daily high of $0.495.
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