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The morning catch up: ASX to falter in early trading, dragged down by US losses

Published 10/11/2023, 09:22 am
Updated 10/11/2023, 10:00 am
© Reuters.  The morning catch up: ASX to falter in early trading, dragged down by US losses
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The ASX is likely to fall in early morning trading today, with ASX futures indicating a small 5-point or 0.07% dip.

The bourse closed up by 19.5 points or 0.28% yesterday, having enjoyed a mostly positive trajectory since the beginning of the month.

A sell off on Wall Street ended the S&P500 and Nasdaq’s winning streaks, taking the Australian market with it.

Between Fed Chair Jerome Powell’s hawkish speech at the International Monetary Fund and a bounce in US Treasury 10-year yields (+2.37%) after a bearish dip, all three major US markets lost ground.

The S&P500 fell 0.81%, the Nasdaq 0.94% and the Dow Jones 0.65%.

On a side note, mega cap tech stocks are now outperforming small caps by the largest margin since the Dot Com Bubble. Signs of an overinflated market? Time will tell.

European and Asian markets

China’s October inflation data drove its shares lower overall in trading yesterday, with weak consumer price index data increasingly the likelihood of further stimulus measures to prop up the faltering Chinese economy.

The benchmark Shanghai Composite Index ended flat at 3053.28, the Shenzhen Composite Index shed 0.5% and the ChiNext Price Index and Hang Seng ended 0.3% lower.

Strong earnings from Casio (+6.97%) and game developer/publisher Nintendo (+5.57%) lifted the Nikkei index 1.5%.

European markets made a better showing on the back of solid corporate earnings, with the DAX in Germany trading up 0.4%, while the UK’s FTSE 100 was little changed. The Euro STOXX 50 was up 0.7% in early trading.

Currencies and commodities

The US dollar strengthened in trading overnight, rising against several major currencies.

The Euro fell by 0.41% to US$ 1.0666, the Yen faltered by 0.31%, with a US dollar now buying 151.3655 yen, and the Aussie slipped by 0.5%, to US$0.6369.

Crude oil arrested some of its downward momentum, slipping just 0.03% in trading overnight, while Gold enjoyed a bounce, lifting 0.36% to US1,962.7.

Copper didn’t enjoy the same progress, dipping 0.25%

On the small cap front

The ASX Small Ordinaries shed 0.06% in trading yesterday, losing just 1.7 points to 2,689.60.

You can read more about the following throughout the day on Proactive:

  • Elixir Energy Ltd (ASX:EXR) spudded its Daydream-2 appraisal well at the 100% owned Grandis Gas Project, which is now expected to take about a month to reach the planned total depth of 4,200 metres.
  • Imugene Ltd (ASX:IMU, OTC:IUGNF)’s Phase 1B Allogeneic CAR T Clinical Trial dosed its first patient, a precursor to a Phase 2 registrational and continued clinical development for its Azer-cel therapy in patients with blood cancer called non- Hodgkin’s lymphoma.
  • Pantoro Ltd (ASX:PNR, OTC:PNTOF) inked a binding agreement for the sale of lithium and particular base metal rights at Norseman, netting up to $60 million in return.
  • SureFire Resources NL completed a $2 million placement that will go to developing the Victory Bore and the High Purity Alumina Projects, for continued exploration on and development of the company’s other 100% owned West Australian projects, and for continued working capital.
  • Ionic Rare Earths Ltd (ASX:ASX:IXR, OTC:IXRRF) is on track to produce its first rare earth element products at its demonstration plant for the first quarter of next year, bringing the Makuutu Rare Earths Project a step closer to production.
  • Read more on Proactive Investors AU

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