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The morning catch up: ASX set for subdued day

Published 07/10/2024, 09:40 am
Updated 07/10/2024, 10:00 am
© Reuters.  The morning catch up: ASX set for subdued day
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It’s a public holiday in NSW, which could mean a subdued day for the ASX.

ASX 200 futures are 0.3% higher at 8,215 points.

A positive start would follow a positive close for the S&P 500 and Nasdaq, which marked their fourth consecutive week of gains.

US sharemarkets

Advanced on Friday, buoyed by a stronger-than-expected employment report that eased concerns over the US economy's potential weakness.

Financials led the S&P 500, surging 1.6% and closing at a record high.

Major banks, including JPMorgan Chase (NYSE:JPM) and Wells Fargo (NYSE:WFC), saw gains of more than 3% each. Megacap stocks Nvidia, Tesla (NASDAQ:TSLA), Amazon (NASDAQ:AMZN) and Netflix (NASDAQ:NFLX) also rose between 1.7% and 3.9%.

Spirit Airlines shares plummeted 24.6% following reports of bankruptcy talks with bondholders, while other airline stocks rallied. United Airlines climbed 6.5%.

Reports that Rio Tinto (ASX:RIO) was in negotiations to acquire lithium miner Arcadium Lithium for between US$4 billion and US$6 billion boosted Albemarle shares by 8.3%.

The Dow Jones index rose 341 points or 0.8% to a record close, while the S&P 500 gained 0.9%. The Nasdaq added 219 points, climbing 1.2%. Over the week, the Dow increased by 0.1%, the S&P 500 gained 0.2% and the Nasdaq rose 0.1%.

European sharemarkets

Closed mostly higher after the strong US jobs report.

  • Banks led the gains, rising 1.8%, while energy stocks added 1.6%, supported by elevated crude oil prices.
  • The FTSEurofirst 300 index rose 0.3%, though it fell 1.8% over the week.
  • In London, the FTSE 100 index remained largely unchanged but dipped 0.5% for the week.

Currencies and commodities

Currencies

Currencies weakened against the US dollar during European and US trading sessions.

  • The Euro dropped from US$1.1036 to US$1.0951, ending near US$1.0975 at the close of US markets.
  • The Australian dollar declined from US$0.6845 to US$0.6784, closing near US$0.6795.
  • The Japanese yen fell from 145.96 yen per US dollar to JPY148.99, settling around JPY148.70 at the close.

Commodities

Global oil prices rose on Friday due to heightened concerns about a potential regional conflict in the Middle East. However, gains were limited after US President Joe Biden advised Israel against targeting Iranian oil facilities.

  • Brent crude increased by US$0.43, or 0.6%, to US$78.05 per barrel.
  • US Nymex crude rose US$0.67, or 0.9%, to US$74.38 per barrel.
  • Over the week, Brent gained 8.4%, its highest since January 2023, while Nymex surged 9.1%, the largest increase since March 2023.

Base metal prices advanced on Friday.

  • Copper futures rose 0.5% following stronger-than-expected US job growth in September, which underscored economic resilience.
  • Aluminium futures jumped 1.3%. For the week, copper declined 0.4%, while aluminium edged up 0.2%.
  • Gold futures dropped US$11.40, or 0.4%, to US$2,667.80 per ounce on Friday as a robust US jobs report reduced the likelihood of an aggressive interest rate cut by the US Federal Reserve. Spot gold traded near US$2,652 per ounce at the close, remaining flat for the week.
  • Iron ore futures climbed by US$0.53, or 0.5%, to US$108.84 per tonne as traders weighed the impact of Chinese stimulus measures on steel demand. The commodity surged 17.1% over the week.

What about small caps?

The S&P/ASX Small Ordinaries finished Friday 0.53% down to 3,102.40. Over the five days, it lost 1.16%.

It has been a steady start to the morning on the small cap news front and you can read about the following and more throughout the day.

  • Pantoro Ltd (ASX:PNR, OTC:PNTOF) has executed an option trade for its 2025 calendar year gold production, in the form of a zero-premium collar. It has entered a gold price protection facility for approximately 24% of 2025 production ounces.
  • Immuron Ltd (NASDAQ:IMRN, ASX:IMC) announced that the US Naval Medical Research Command (NMRC) has completed the interim analysis for the clinical evaluation of its new oral therapeutic, which targets Campylobacter and Enterotoxigenic Escherichia coli (ETEC). This follows ongoing discussions between Immuron and the NMRC regarding the therapeutic’s development and potential.
  • Corazon Mining Ltd (ASX:CZN, OTC:CRZNF) announced initial-stage exploration results from the MacBride base and precious metals project near the company’s 100% owned Lynn Lake Nickel-Copper-Cobalt Sulphide Project in the province of Manitoba, Canada.
  • Nexus Minerals Ltd (ASX:NXM) released the results of the recently completed diamond program at the Crusader-Templar Gold Deposit, situated at the Wallbrook Gold Project, 140 kilometres northeast of Kalgoorlie, WA.
  • Orthocell Ltd (ASX:OCC, OTC:ORHHF) has continued growth in sales of its market-leading medical devices, Striate+™ and Remplir™. The record revenue achieved for the September 24 Quarter marks the second consecutive quarter of record revenue for the company.
  • Read more on Proactive Investors AU

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