Breaking News
Get 40% Off 0
🔎 See NVDA's full ProTips for an instant risks or rewards Claim 40% OFF

The morning catch up: ASX expected to have a day on the green after S&P 500 hits 19-month high

Published Dec 11, 2023 09:37 Updated Dec 11, 2023 10:00
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. The morning catch up: ASX expected to have a day on the green after S&P 500 hits 19-month high
 
US500
-0.60%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
US2000
-1.43%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
AXJO
-0.08%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
AUD/USD
+0.04%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
TIOc1
0.09%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
WTI/USD
-1.31%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

The ASX is expected to rise today, following on from the S&P 500’s 19-month high.

ASX 200 futures are trading 16 points higher, up 0.22% as of 8:20 am AEDT.

“The ASX200 finished 121 points (1.72%) higher last week at 7,194, following the dovish RBA on-hold decision and sub-par GDP growth, resulting in expectations of RBA rate cuts for the second half of 2024,” writes IG Market analyst Tony Sycamore.

The best-performing sectors were Real Estate (+3.53%), Consumer Staples (+2.59%) and IT (+2.14%). Energy (-1.30%) and Utilities (-0.76%) were the only two sectors to lose ground last week.

US stock markets closed higher for a sixth straight week, despite a strong US employment report. Stronger numbers pushed back the timing and extent of 2024’s mooted Federal Reserve rate cuts.

Non-farm payrolls increased by 199,000 in November versus the expected 183,000. The unemployment rate fell to 3.7% versus an expected 3.9%. Average hourly earnings rose by 0.4% MoM versus 0.3% expected and the participation rate ticked higher to 62.8%.

“The run of data that proceeded Friday's NFP data has mostly been softer and equity markets appeared willing to overlook NFP as an outlier. However, the equity market is unlikely to be so forgiving if it gets another fright this week from either CPI, the FOMC meeting, or retail sales,” Sycamore noted.

Here’s what we saw:

  • Dow Jones +0.36%;
  • S&P 500 +0.41%;
  • NASDAQ +0.45%;
  • Russell 2000 +0.67%;
  • Gold -1.53% at US$2,014.5/oz;
  • WTI Oil +2.22% at US$71.23/bb;
  • Iron Ore +1.90% at US$135.45/t; and
  • AUD -0.32% to 0.6583 US cents.

What's next for Australian stock market?

Wealth Within chief analyst Dale Gillham runs the ruler over what to expect from the Australian market in the coming days and weeks.

“There is a saying that all good things come to those who wait, and over the past few weeks and months, I have urged everyone to be patient as the time to buy some great stocks will come.

"While I was positive, I was still being very cautious given how many false triggers we have seen in the past few years. However, this week, our patience has been rewarded as we have seen the All Ordinaries Index rise over 1% to its highest level in eleven weeks.

"I previously mentioned that for me to be more positive, the price needed to continue to rise this week above 7,334 points, which is what has occurred. But what I am even more excited about is that this current move is being driven by the big end of town, with the Financials and Materials sectors both rising over 1%.

“We need to remember that the top 20 stocks in our market make up around 50% of the market capitalisation, so for our market to gain momentum in a particular direction we need to see these stocks move.

"Right now, there are many stocks in the top 20 looking great including CBA and WES. While it is a little too early for CSL Limited (ASX:CSL), Macquarie Group Ltd and Coles Group Ltd, these stocks are worth putting on your watch list.”

What about small caps?

The S&P/ASX Small Ordinaries closed out Friday 0.21% higher. It finished 1.28% higher for the week.

It has been slow on the news front this morning, however, you can read about the following and more throughout the day.

  • Predictive Discovery Ltd (ASX:ASX:PDI, OTC:PDIYF) has reported exploration drilling results from the Bankan Gold Project in Guinea, from various targets near the 5.38-million-ounce NEB and BC deposits.
  • Dynamic Metals Ltd (ASX:DYM) announced the results from first-pass soil sampling completed at Spargos East, part of the larger Widgiemooltha Project in the Goldfields Region of Western Australia.
  • Prescient Therapeutics Ltd (ASX:PTX, OTC:PSTTF) released results from its Phase 1b study of PTX-100 in patients with advanced malignancies, with a focus on patients with relapsed and refractory T-cell lymphomas (r/r TCL).
  • Ionic Rare Earths Ltd (ASX:ASX:IXR, OTC:IXRRF) has signed a share purchase agreement with Rare Earth Elements Africa (Pty) Ltd under which IonicRE will acquire a further 34% interest in local Ugandan operating entity Rwenzori Rare Metals Limited which owns the Makuutu Rare Earths Project. IonicRE has an existing 60% interest in the troject prior to the transaction.
  • Torque Metals Ltd (ASX:TOR) has agreed amended terms to acquire 100% of the extensive and strategic package of tenements adjacent to the company’s Paris Gold Camp, including the New Dawn Lithium Project.
  • Read more on Proactive Investors AU

    Disclaimer

    The morning catch up: ASX expected to have a day on the green after S&P 500 hits 19-month high
     

    Related Articles

    Add a Comment

    Comment Guidelines

    We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

    • Enrich the conversation
    • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
    • Be respectful. Even negative opinions can be framed positively and diplomatically.
    •  Use standard writing style. Include punctuation and upper and lower cases.
    • NOTE: Spam and/or promotional messages and links within a comment will be removed
    • Avoid profanity, slander or personal attacks directed at an author or another user.
    • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
    • Only English comments will be allowed.

    Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

    Write your thoughts here
     
    Are you sure you want to delete this chart?
     
    Post
    Post also to:
     
    Replace the attached chart with a new chart ?
    1000
    Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
    Please wait a minute before you try to comment again.
    Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
     
    Are you sure you want to delete this chart?
     
    Post
     
    Replace the attached chart with a new chart ?
    1000
    Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
    Please wait a minute before you try to comment again.
    Add Chart to Comment
    Confirm Block

    Are you sure you want to block %USER_NAME%?

    By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

    %USER_NAME% was successfully added to your Block List

    Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

    Report this comment

    I feel that this comment is:

    Comment flagged

    Thank You!

    Your report has been sent to our moderators for review
    Continue with Google
    or
    Sign up with Email