The ASX is likely to lift 0.2% or 13 points this morning according to ASX futures, buoyed by upward momentum in European markets, which were mostly supported by Energy stock gains.
Adding to the momentum was the European Central Bank's (ECB) October meeting minutes, which reflected a cautiously optimistic stance on the easing of inflation within the euro zone, and consequently signalled a dwindling chance of more rate hikes.
Bond yield lifted in response to mixed economic data, that depicted European economies grappling with challenges in November, yet performing marginally better than anticipated projections.
The HCOB's euro zone composite Purchasing Managers' Index (PMI) exhibited a slight increase to 47.1, a modest improvement from the near three-year low of 46.5 recorded in October.
Despite this uptick, the index remains below the critical 50 mark that distinguishes growth from contraction, aligning with the survey's prediction of 46.8.
In Sweden, the Riksbank's decision to pause its tightening campaign led to a 0.6% rise in the OMX Stockholm 30 index.
Conversely, Dutch banking stocks faced a downturn, with ING's shares dropping by 0.8%, influenced by the unexpected election victory of Geert Wilders’ anti-European Union Freedom Party.
Despite that, the Amsterdam AEX index closed with a 0.3% gain.
Across the continent, the FTSEurofirst 300 index also registered a 0.3% increase.
Sector-wise, oil and gas stocks led the gains with a 1.3% rise. Health Care shares also advanced, growing by 0.7%, bolstered by Novo Nordisk (CSE:NOVOb) (NYSE:NVO)'s 1% gain following its announcement of a US$2.3 billion investment to expand production of its popular weight-loss and diabetes drugs.
In the United Kingdom, the FTSE 100 index experienced a modest increase of 0.2%, contributing to the overall positive sentiment in the European markets.
Only futures moved in US market closed for Thanksgiving; Dow Jones futures rose 32 points to 0.09%, the S&P500 added 0.05% while the Nasdaq futures lifted 12 points or 0.08%.
Currencies and commodities
The US dollar strengthened again against major currencies overnight.
The Euro declined against the dollar, falling from US$1.0924 to US$1.0886, and stabilising around US$1.0905 during the afternoon in North America.
Similarly, the Australian dollar saw a decrease, moving from 65.73 US cents to 65.50 US cents, before slightly recovering to 65.60 US cents in North American afternoon trade.
The Japanese yen also softened, shifting from 148.88 yen per US dollar to 149.68 yen, and was hovering around JPY149.55 in the North American afternoon.
Oil continued to fall, shedding 1% overnight, extending previous losses. The weakness was fuelled by expectations that the Organization of the Petroleum Exporting Countries and its allies (OPEC+) might not intensify their output cuts in the upcoming year.
This speculation arose following the group's decision to delay its policy meeting until November 30.
Consequently, the Brent crude price fell by 54 cents, or 0.7%, to US$81.42 per barrel. The US Nymex crude price also decreased by 75 cents, or 1%, reaching US$76.35 per barrel in after-hours trading. Trading volumes were notably low due to the US holiday.
In the metals market, base metal prices experienced an upturn in London's Thursday trade.
This rise was attributed to the weakening of the US dollar, which boosted the demand for dollar-priced metals among buyers using the Chinese yuan.
Copper futures increased by 0.6%, while aluminium futures saw a 0.4% rise.
Gold futures modestly increased, rising by 50 cents, or less than 0.1%, to US$1,993.30 an ounce in after-hours trading. Spot gold was trading around US$1,991 an ounce in late North American trade.
Meanwhile, iron ore futures in Singapore declined by US$1.49, or 1.1%, to US$133.18 a tonne.
This drop came as Chinese authorities intensified efforts to temper the surge in the steel-making ingredient. US futures markets were closed for a public holiday after concluding at a nine-month high of US$129.84 a tonne on Wednesday.
On the small cap front
The ASX Small Ordinaries shed 11 points or 0.41% last night, following the ASX200 down but not as sharply as the index’s 0.62% loss.
You can read about the following and more throughout the day.
Aurumin Ltd (ASX:AUN) has sold Mt Dimer iron ore rights for $250,000 in cash consideration, with progress payments that could lift that number to a total of $1 million, plus a $1.00 per tonne royalty on exported ore.
Iondrive Ltd (ASX:ION) has engaged with respected battery supply chain consulting firm Rho Motion to assist with completion of a Prefeasibility Study for Deep-Eutectic Solvent (DES) battery recycling technology, in an effort to progress towards commercialisation.
Surefire Resources NL (ASX:SRN) has extended the closing date of its entitlement offer due to extended mail delivery times, with the new deadline being Friday December 8.