In what is likely to be a week of volatile trading, Wall Street enjoyed a broad rally on the first day of election voting for the US Presidency, in turn lifting ASX Futures 0.7% or 61 points, indicating a positive start to trading.
US and European markets
The VIX Wall Street Volatility index fell 20.8 points overnight, indicating an easing in investor fears as voting began in earnest, well below the levels seen in 2020 and the two-month high it touched last week.
Megacap growth stocks were the beneficiaries – Tesla (NASDAQ:TSLA) lifted 3.5% and Nvidia 2.9% while the small-cap Russel 2000 gained 1.7%.
Data analytics company Palantir Technologies (NYSE:PLTR) reached a new record high after surging 23.5% on releasing a third improved annual revenue forecast.
Food processor Archer-Daniels-Midland fell 6% after missing analyst estimates with both third-quarter and full-year earnings.
The ever-embattled Boeing (NYSE:BA) fell again after lifting in pre-market trade, slipping 2.6% despite a worker’s strike coming to an end.
The Dow rose 1% or 427 points, the S&P500 1.2% and the Nasdaq 1.4% or 259 points.
In Europe, markets had a mixed performance. A raft of disappointing earnings coupled with uncertainties over the US election kept trading subdued.
Industrial stocks gained 1.2% as auto stocks fell 1.8%. Ferrari (NYSE:NYSE:RACE)’s drop in third-quarter car shipments lopped 7.1% off the luxury Italian car manufacturer’s stock.
The FTSE300 lifted 0.1% and the UK FTSE100 slid 0.1%.
Currencies and commodities
The US dollar fell in overnight trading. The Euro lifted from US$1.0876 to around US$1.0925 at the US close, the Aussie from US$0.6591 to near US$0.6635, while the Japanese yen appreciated from JPY152.53, closing around JPY151.55.
Oil prices rose again, anticipating a reduction in US production due to a storm brewing in the Gulf of Mexico and a weaker US dollar.
Brent crude rose by 0.6% to US$75.53 per barrel, while US Nymex crude increased by 0.7% to US$71.99 per barrel.
Base metal prices climbed, with copper futures up 1.0% and aluminium futures rising 2.2%, supported by the weaker US dollar and continued anticipation of Chinese economic stimulus.
Gold futures edged up by US$3.50 (0.1%) to US$2,749.70 per ounce, reflecting investor caution over potential political uncertainty in the US election.
Iron ore futures gained 1.1% to US$105.09 per tonne, driven by optimism around potential Chinese stimulus despite weak market fundamentals.
On the small cap front
The ASX small ordinaries fell 0.60% yesterday, following the ASX200 down as it slipped 32.80 points or 0.40%.
You can read about the following and more throughout the day on our website.
Great Boulder Resources Ltd (ASX:GBR) has hit subvertical gold mineralisation in a resource growth drilling program at the Mulga Bill prospect of the Side Well Gold Project in Western Australia.
Asian Battery Metals PLC (ASX:AZ9) has resumed diamond drilling at the Oval Project in Mongolia and identified 17 conductor plates with a downhole electromagnetic (DHEM) survey, with peak conductivity up to 29,000 siemens and lengths of up to 103 metres.
Lightning Minerals Ltd (ASX:L1M) has appointed lithium expert Jamie Day as a non-executive director, seeking to leverage his expertise as a geologist with world-class lithium discoveries.
AuKing Mining Ltd (ASX:AKN) has won a bid for a gold exploration licence in Saudi Arabia, together with local Saudi Arabian partner, Barg Alsaman Mining Company as part of the Saudi Ministry of Industry and Mineral Resources’ 6th Licensing Round bid process.
Evion Group NL (ASX:EVG, OTC:EVIGF) has secured first sales from its expandable graphite joint venture operations to the tune of $2 million, paving the way for full production ramp-up now that samples have passed offtake muster.