The ASX200 Futures are indicating an unlikely turn of events, forecasting gains on the ASX today despite a poor performance for US markets overnight and particular weakness in the Nasdaq’s tech darlings.
Inflation remained at 2.1% for the month of October, reassuring the market that rate cuts are still on the cards for the first half of next year.
US and European markets
Five of the Magnificent Seven failed to live up to the moniker in overnight trading. Nvidia fell 1.15%, Tesla (NASDAQ:TSLA) 1.58%, Meta Platforms 0.76%, Microsoft (NASDAQ:MSFT) 1.17% and Amazon (NASDAQ:AMZN) 1.02%.
They weren’t the only tech stocks to suffer in US trading – HP and Dell both underwhelmed the market with their forecasts, leading to eyewatering stock price falls of 11.33% and 12.25%, respectively.
The Philadelphia SE Semiconductor index fell 1.5% to a two-month low.
Initial jobless claims remained unchanged at 213,000, an indicator the job market remains strong.
Despite closing higher three trading days in a row, the Dow closed down 0.3% or 138 points and the S&P500 fell back from Tuesday’s record high with a 0.4% pullback. The Nasdaq took a little more damage, falling 0.6% or 115 points.
In Europe, the French Government’s struggle to push through a budget led to widespread market uncertainty and concerns over potential US tariffs pushed automaker stocks 0.3% lower.
The FR40, the main French index, slipped 0.61%. Technology stocks were similar to those in the US, shedding 1.4%.
The FTSE300 fell 0.2% overall while the UK-centred FTSE100 gained 0.2%.
Currencies and commodities
The US dollar fell in overnight trading. The Euro gained from US$1.0475 to near US$1.0565, the Aussie from US$0.6470 to near US$0.6495 and the Japanese Yen from JPY152.42 per US dollar to JPY151.10.
Global oil prices were mostly unchanged despite a significant rise in US gasoline stocks, which grew by 3.3 million barrels to 212.2 million, against expectations of a 46,000-barrel draw.
Brent crude rose by US$0.02 (0.03%) to US$72.83 per barrel while US Nymex crude fell by US$0.05 (0.1%) to US$68.72 per barrel.
Base metal prices showed mixed trends. Copper futures increased by 0.4%, supported by a weaker US dollar and optimism about Chinese policy stimulus. Aluminium futures declined by 0.2%.
Gold futures climbed by US$18.60 (0.7%) to US$2,639.90 per ounce, bolstered by a weaker US dollar.
Spot gold traded near US$2,636 per ounce. Iron ore futures rose by US$0.11 (0.1%) to US$102.17 per tonne, driven by stronger steel production in China.
On the small cap front
The ASX Small Ordinaries gained 0.68% yesterday, outstripping the ASX200’s 0.47% gain.
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