The local market looks set to bounce back from yesterday’s loss and open higher, based on ASX SPI 200 Futures trading up 3 points (0.04%) to 8,254.
That comes despite falls in the US overnight as investors grew more cautious after Iran fired missiles at Israel.
- The Dow Jones index fell by 173 points or 0.4%;
- The S&P 500 index dipped 0.9%; and
- The Nasdaq index shed 279 points or 1.5%.
Safe-haven assets were bid up with bonds, oil, gold and the US dollar all advancing at the expense of equities after Iran fired a barrage of missiles at Israel following an advance of forces into Lebanon.
Investors were also keeping an eye on a US port strike on the East Coast and the Gulf Coast, halting the flow of about half the nation's ocean shipping.
The technology sector was the worst performer with Apple (NASDAQ:AAPL) and Nvidia each sinking around 3%. HP shares slumped 3.1% after Citi downgraded the personal computer maker to neutral from buy, citing a deteriorating industry setup and limited near-term artificial intelligence tailwinds.
Walt Disney (NYSE:DIS) shares slid 2.2% after broker Raymond James downgraded the media conglomerate to market perform from outperform, saying moderating demand and business.
European markets
European sharemarkets were mixed on Tuesday. Most sectors fell, with euro zone banks leading losses, down 2.3%. But heavyweight energy stocks jumped 1.3%, tracking an advance in crude oil prices.
Annual inflation in the 20 countries sharing the Euro currency eased to 1.8% in September from 2.2% in August, the lowest since mid-2021. (survey: 1.8%).
- The continent-wide FTSEurofirst 300 index fell 0.4%.
- In London, the UK FTSE 100 index rose 0.5%.
Currencies
Currencies were mixed against the US dollar in European and US trade.
The Euro fell from US$1.1140 to US$1.1044 and was near US$1.1070 at the US close.
- The Aussie dollar dipped from US69.29 cents to US68.56 cents and was near US68.85 cents at the US close.
- The Japanese yen rose from 144.50 yen per US dollar to JPY143.03 and was near JPY143.50 at the US close.
Commodities
Global oil prices jumped on Tuesday after Iran fired ballistic missiles at Israel in retaliation for Israel's campaign against Tehran's Hezbollah allies in Lebanon.
- The Brent crude price rose by US$1.86 or 2.6% to US$73.56 a barrel.
- The US Nymex crude price gained US$1.66 or 2.4% to US$69.83 a barrel.
A panel of ministers from the OPEC+ producer group is due to meet today to review the crude oil market.
Base metal prices advanced on Tuesday on investor optimism about economic stimulus measures from China.
- Copper futures rose 0.9%
- Aluminium futures added 1.2%.
The gold futures price climbed US$30.90 or 1.2% to US$2,690.30 an ounce on Tuesday on safe-haven demand as fears of a full-out war in the Middle East escalated after Iran fired ballistic missiles at Israel. Spot gold was trading near US$2,662 an ounce at the US close.
Iron ore futures gained US$1.28 or 1.2% to US$108.74 a tonne on Tuesday on the back of optimism over Chinese stimulus and more US interest rate cuts.
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