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The morning catch up: ASX to open lower ahead of May inflation data

Published 26/06/2024, 09:28 am
© Reuters.  The morning catch up: ASX to open lower ahead of May inflation data
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After a strong showing yesterday, the local market looks set to open lower this morning.

SPI Futures were down 0.37% at 8:30am (AEST) ahead of what will be a closely watched ABS release of the latest consumer price index data for May at 11:30am.

The latest inflation data may provide hints about what the RBA will do next after governor Michelle Bullock revealed the central bank discussed hiking rates at its last meeting.

Overseas markets

US sharemarkets were mixed overnight. The S&P 500 index gained 0.4% and the Nasdaq index added 221 points or 1.3% but the Dow Jones fell by 0.8%.

Technology shares rose 1.8%, leading sectoral gains on the S&P 500 index.

  • AI chip giant Nvidia jumped 6.8% after a US$430 billion sell-off and the broader chip sector outperformed with the Philadelphia Semiconductor index adding 1.8%.
  • Cruise operator Carnival (NYSE:CCL) soared 8.7% after increasing its annual profit forecast. Norwegian Cruise Line and Royal Caribbean Cruises rose between 4% and 5.1%.
  • Home improvement retailer Home Depot (NYSE:HD) fell 3.6%.
  • Retail giant Walmart (NYSE:WMT) shed 2.2% after its CFO flagged the second quarter as the "most challenging quarter" at the NYSE 2024 European Investor Conference in London.

In Europe, the continent-wide FTSEurofirst 300 index fell 0.2% and the UK FTSE 100 index dipped 0.4% in London.

Currencies

Currencies were weaker against the US dollar in European and US trade.

  • The Euro fell from US$1.0741 to US$1.0690 and was near US$1.0715 at the US close.
  • The Aussie dollar dipped from US66.71 cents to US66.34 cents and was near US66.45 cents at the US close.
  • The Japanese yen fell from 159.29 yen per US dollar to JPY159.74 and was near JPY159.70 at the US close.

Commodities

Global oil prices fell 1% on Tuesday as a stronger US dollar overshadowed rising geopolitical risks.

Soft US consumer confidence data also fuelled worries about the economic outlook and added to demand concerns after a slow start to the US summer driving season.

  • The Brent crude price fell by US$1 or 1.2% to US$85.01 a barrel.
  • The US Nymex crude price lost US80 cents or 1% to US$80.83 a barrel.

Base metal prices slipped on Tuesday as the US dollar firmed.

  • Copper futures slid 3.2% with stalled demand growth in China and soaring inventories reinforcing negative sentiment.
  • Aluminium futures eased 0.1%.

The gold futures price fell by US$13.60 or 0.6% to US$2,330.80 an ounce on Tuesday, weighed down by a stronger US dollar. Spot gold was trading near US$2,319 an ounce at the US close.

Iron ore futures dipped US9 cents or 0.1% to US$106.46 a tonne on Tuesday as traders assessed China's continuing efforts to ease its protracted property crisis.

What’s on?

In Australia, the monthly Consumer Price Index (CPI) indicator is released with the leading index. Reserve Bank (RBA) assistant governor Christopher Kent delivers a speech.

What’s happening in small caps?

The S&P/ASX Small Ordinaries (XSO) was down 27.50 points or -0.92% to 2,977.10 overnight.

  • Sovereign Metals Ltd (ASX:SVM, OTC:SVMLF, AIM:SVML) has signed a memorandum of understanding with The Palladium Group — a US-based development entity implementing several development projects in Malawi.
  • Novo Resources Corp (TSX:NVO, OTCQX:NSRPF, ASX:NVO). has provided an update on follow-up drill programs at the Becher Project, which is part of the Egina earn-in and joint venture with De Grey Mining Ltd, where aircore and RC drilling programs are set to recommence.
  • Intra Energy Corporation Ltd (ASX:IEC) confirms the successful completion of a heritage survey at its high-priority Maggie Hays Hill Project in the Lake Johnston Greenstone Belt, enabling the company to start drilling “in a few weeks".
  • Race Oncology Ltd (ASX:RAC, OTC:RAONF) advises that the RC220 Bisantrene GLP non-clinical toxicology and safety pharmacology program was successfully completed, supporting the initiation of human clinical trials in H2 2024.
  • Alligator Energy Ltd (ASX:AGE, OTC:ALGEF) has initiated a detailed high-resolution airborne magnetic and radiometric survey over its Nabarlek North Project in the Alligator Rivers Uranium Province Northern Territory.
  • Read more on Proactive Investors AU

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