The ASX looks set to open higher with ASX futures up 0.35% following a positive lead from Wall Street on upbeat corporate earnings results.
The optimism comes ahead of today’s release of September-quarter inflation figures which could give a clue about the RBA's next rate decision. Economists expect annual headline inflation to have slowed to 5.3% from its 6% pace in the June quarter.
In a speech last night, new RBA governor Michele Bullock warned another rate hike may be necessary, and suggested the central bank would be closely watching this week’s inflation figures.
In the US, the benchmark S&P 500 index closed 0.7%, coming off session highs but finding support above the key 4,200 mark. The Dow added 0.6% and the tech-heavy Nasdaq 100 gained 0.9%.
Overseas markets overnight
Tech giants Microsoft (NASDAQ:MSFT) and Google’s parent company Alphabet (NASDAQ:GOOGL) reported their results after the market close. Microsoft added 5% in after-hours trading on news its profits jumped 27% during the quarter. Alphabet, meanwhile, fell 6% after hours after delivering a mixed result with demand surging for AI technology but its cloud division missing expectations.
Verizon Communications (NYSE:VZ) added 9.3% after the US wireless carrier raised its annual free cash flow forecast. General Electric (NYSE:NYSE:GE) jumped 6.5%, having lifted its full-year profit forecast. Coca-Cola (NYSE:KO) raised its annual sales outlook and gained 2.9%. Industrial goods maker 3M (NYSE:MMM) was up 5.3% after lifting its full-year adjusted profit forecast.
European markets snapped a five-session losing streak on Tuesday on earnings optimism. The continent-wide FTSEurofirst 300 index rose by 0.4%, and in London, the UK FTSE 100 gained 0.2%. Mining stocks led gains with a 2.7% increase as metal prices ticked higher.
Commodities
Global oil prices fell on Tuesday for the third straight session on signs the Israel-Hamas war will remain contained for the time being. Weak European business activity data weighed on the outlook for energy demand.
The Brent crude price fell by US$1.76 or 2% to US$88.07 per barrel. West Texas Intermediate extended Monday’s drop with a 2.2% fall to US$83.59 per barrel, And the US Nymex crude price lost 2% to US$83.74 a barrel.
Base metal prices rebounded. Copper futures gained 1% as China's parliament approved a bill that will allow local governments to front-load part of their 2024 bond quotas and issue new sovereign debt. The aluminium futures price rose by 0.4%.
Iron ore futures rose in Singapore trading in response to Beijing preparing an additional sovereign debt issuance.
Gold futures fell by US$1.70 to US$1,986.10 an ounce. Spot gold was trading near US$1,972 an ounce at the US close.
What’s on today?
The ABS will release the September quarter Consumer Price Index (CPI) figures at 11:30am AEDT.
Sales and earnings results are scheduled for Champion Iron, Mirvac, PointsBet and Woolworths. Production results are issued by Ampol, Beach Energy (ASX:BPT) and Mineral Resources. AGMs are hosted by Codan (ASX:CDA), Corporate Travel Management, Dexus, Helloworld Travel, Liberty Financial, National Storage REIT, St Barbara, Super Retail Group and Tabcorp.
On the small cap front
The S&P ASX Small Ordinaries gained 0.3% yesterday.
You can read more about the following throughout the day.
- Piedmont Lithium (ASX:NASDAQ:PLL, OTC:PLLTL) Ltd has received a lithium mining lease from the government of Ghana, providing rights to mining and commercial production for an initial 15 year period at its Ewoyaa Lithium Project.
- Helix Resources Ltd (ASX:HLX) maiden drilling has identified copper mineralisation within regional scale polymetallic surface anomaly at the Black Range prospect in the Cobar-Nyngan area of central NSW.
- Yandal Resources Ltd (ASX:YRL) has received “promising” final assay results from the RC drilling program at the Oblique and New England Granite prospects within the Ironstone Well – Barwidgee (IWB) Gold Project in WA.
- Auric Mining Ltd (ASX:AWJ) has banked $2.2 million — its first surplus cash distribution from Jeffreys Find Gold Mine.