Australian shares are expected to open lower today following mixed results on Wall Street last night, where the Dow Jones rallied for the sixth consecutive day, while the other major indices lost momentum.
ASX futures were down 19 points or 0.2% to 7,806 at 7:00am AEDT.
Dow up, Nasdaq down
US economic data revealed a 0.4% decline in wholesale inventories for March, matching forecasts, while trade sales decreased by 1.3%, contrasting with an anticipated increase.
The Dow closed up 172 points or 0.4% – spurred on by some rates optimism, while the S&P 500 remained flat and the Nasdaq fell by 30 points or 0.2%.
Tech and tech-adjacent companies led the slump, with Uber Technologies dropping 5.7% after indicating that its second-quarter gross bookings might fall short of expectations.
Tesla (NASDAQ:TSLA) also fell 1.7% following reports that US prosecutors are investigating potential securities or wire fraud related to the company's representations of its electric vehicles' self-driving capabilities.
Intel Corporation (NASDAQ:INTC) slid 2.2% after announcing potential sales impacts due to the US revoking some of the company's export licences for China.
By contrast, utilities stocks climbed 1.1%, with Vistra Corp notably up 9.1% after surpassing first-quarter earnings expectations.
Commonwealth Bank earnings
Australia's biggest lender, Commonwealth Bank of Australia (ASX:CBA) (CBA), reported a nearly 7% decline in third-quarter cash earnings, primarily impacted by fierce competition in the mortgage sector and rising operational costs.
CBA achieved a cash net profit after tax of A$2.4 billion for the quarter ending March 31, surpassing the consensus estimate of A$2.33 billion from Visible Alpha, as compiled by Citi – but this figure still fell short of the A$2.6 billion recorded in the same period last year.
The bank cited margin pressures exacerbated by competitive forces and a shift by customers towards higher-yielding deposits as key challenges during the quarter.
In Europe
European markets closed at new record highs, with the food and beverage sector leading gains.
Anheuser-Busch InBev (NYSE:BUD) shares surged by 4% after the company reported first-quarter earnings that exceeded consensus forecasts and confirmed its outlook for 2024.
The Riksbank, Sweden's central bank, reduced its key interest rate to 3.75% from 4%, aligning with expectations and signaling potential further cuts later in the year if inflation pressures moderate.
Currencies and commodities
Global currencies’ performance against the greenback was mixed. The Euro and Australian dollar saw modest gains, while the Japanese yen weakened. The Aussie dollar is now trading at 65.78 US cents.
Global oil prices increased after a significant draw in US crude stockpiles, suggesting increased refining activity ahead of the summer driving season. Brent crude oil was up 0.7 per cent, trading at $US83.70 a barrel.
Base metals, however, faced a downturn, with copper and aluminium futures losing ground. Gold and iron ore prices also declined amid various global economic pressures. Spot gold was trading 0.2% lower to $US2,308.64, while iron ore was down 2.6% to $US115.10 a tonne.
Looking ahead, the financial calendar remains busy with key earnings releases, policy decisions from the Bank of England and economic data releases from China and the US.