The ASX is tipped to open lower this morning with the ASX 200 futures down 20 points, or -0.27%.
This follows the release of US inflation data overnight, the release of which caused a pullback in US market from session highs. The US inflation report was slightly cooler-than-expected as headline inflation rose to 3.2% in July, against expectations of a 3.3% rise, but up from 3.0% in June, breaking a 12-month streak of lower year-on-year inflation readings.
The CPI data continue to support the disinflation and peak Fed narratives, but US optimism continues to be offset by Treasury supply concerns, rising energy prices, stretched long positioning, capitulation of shorts, seasonality headwinds and fading AI optimism.
The Aussie market again closed marginally higher yesterday with the ASX 200 Index finishing up 19 points (+0.26%) at 7,357, near the day’s high. The gains were led by Energy (+2.27%), Consumer Discretionary (+0.60%) and Healthcare (0.50%), while the Real Estate sector ended the session lower (-1.79%).
What happened overnight?
Here’s what we saw (source CommSec):
US markets
US sharemarkets gave up early gains to trade mostly flat on Thursday, as initial optimism over milder-than-feared US consumer prices data gave way to concerns that monetary policy will remain tight to prevent a flare-up in inflation. Tesla (NASDAQ:TSLA) led gains in megacap stocks, up by 1.3%. Shares of Walt Disney (NYSE:DIS) rose by 4.9% after beating Wall Street estimates for quarterly adjusted profit per share. Wynn Resorts (NASDAQ:NASDAQ:WYNN) advanced 2.6% on a better-than expected report. Capri shares surged 55.7% after larger rival Tapestry said it would buy the Michael Kors parent in an US$8.5 billion deal. Tapestry's shares fell 15.9%. US-listed shares of Alibaba (NYSE:BABA) jumped 4.6% after the e-commerce conglomerate reported upbeat quarterly sales on the back of improved consumer sentiment.
- The Dow Jones index rose by 53 points or 0.2%.
- The S&P 500 index inched up by 0.02%.
- The Nasdaq index added 16 points or 0.1%.
European markets
European sharemarkets climbed on Thursday. Personal and household goods topped sectoral gainers, rising 2.7% after China lifted its pandemic-era restrictions on group tours for more countries, in a potential boon for its tourism sector. The travel and leisure sector added 1.5%. Shares of French luxury group LVMH gained 3.4%. Germany's Allianz (ETR:ALVG) climbed 4.9% after reporting better-than-expected quarterly profit.
- The continentwide FTSEurofirst 300 index rose by 0.8%.
- In London the UK FTSE 100 index gained 0.4%.
Currencies were weaker against the US dollar in European and US trade.
- The Euro fell from US$1.1057 to US$1.0976 and was near US$1.0980 at the US close.
- The Aussie dollar dipped from US66.11 cents to session lows near US65.15 cents at the US close.
- The Japanese yen eased from 143.35 yen per US dollar to JPY144.81 and was near JPY144.70 at the US close.
Global oil prices fell by up to 1.9% on Thursday as US interest rate hike fears subsided. Recent data showed the consumer sector in China fell into deflation and factory gate prices extended declines, raising concerns about fuel demand in the world's second-largest economy.
- The Brent crude price fell by US$1.15 or 1.3% to US$86.40 a barrel.
- The US Nymex crude price shed US$1.58 or 1.9% to US$82.82 a barrel.
- The copper futures price fell by 0.4%, pressured by patchy post-pandemic recovery in China.
- The aluminium futures price rose by 1.5%.
- The gold futures price fell by US$1.70 or 0.1% to US$1,948.90 an ounce.
- Spot gold was trading near US$1,912 an ounce at the US close.
- Iron ore futures dipped by US10 cents or 0.1% to US$104.60 a tonne as China's property woes deepened. Investors are concerned that developer Country Garden Holdings could default on its debt.
In Australia, Reserve Bank (RBA) Governor Philip Lowe and Deputy Governor Michele Bullock both appear before the House of Representatives Standing Committee on Economics. Baby Bunting, Charter Hall Social Infrastructure REIT, Kelly Partners, Newcrest Mining, News Corp (NASDAQ:NWSA) (NASDAQ:NWS), Nick Scali and REA Group all release earnings. Shares of Janus Henderson and SSR Mining both trade ex-dividend.
On the small cap front
The S&P ASX Small Ordinaries lost 0.06% yesterday. You can read more about the following throughout the day.
- Sipa Resources Ltd (ASX:SRI) next phase of rare earth element exploration is underway with mapping and surface sampling of targets at Wolfe Basin now complete.