The ASX is likely to open slightly higher this morning with the ASX 200 futures trading 0.28% higher at 8:30am (AEDT).
Ovenight, in the US the S&P 500 and Dow Jones ended the day flat, while the Nasdaq lost 0.25% amid weakness in tech stocks. Nvidia lost 4.7% on news the US will restrict the sale of chips that Nvidia specifically designed for the Chinese market and curbed exports to two Chinese AI chip firms.
Today’s focus will be on RBA speeches, a day after the RBA minutes from the October meeting revealed the board considered hiking rates last month.
RBA governor Michele Bullock will speak at a fireside chat at the AFSA Annual Summit Panel in Sydney at 9.30am and RBA head of international department Penelope Smith will address the CFA Societies 2023 Australian Investment Conference at 10.40am.
US sales figures beat expectations
September US retail sales rose by more than expected, pointing to the durability of US household demand thanks to a strong job market, despite the recent pickup in inflation driven by rising energy prices.
“We have long stressed that real income is the last major driver of spending, and continued labour market tightness suggests income can continue to fuel consumption in the near term,” said Wells Fargo (NYSE:WFC).
The strong third-quarter earnings data suggested the Federal Reserve may keep policy tight for longer than expected.
The sales data resulted in a surge in US bond yields — the US 10-year note reached 4.84%; the 30-year at 4.93%.
Chinese data due
A batch of Chinese data is due today including GDP, industrial output and retail sales figures.
TD Securities expect China’s GDP growth in Q3 to “print in line with consensus at 4.5% year-over-year (Q2: 6.3%) as China’s recovery gains traction from the raft of property and monetary support measures introduced in August.
“A big upside surprise in GDP would alleviate concerns that China’s 5% official 2023 growth target is out of reach, and we could see more positive sentiment on China which gives a shot of strength to the yuan.”
The World Steel Association expects China’s property market to stabilise in the latter part of the year with China’s steel demand to record slight positive growth thanks to government measures.
What’s on today?
The local focus today is on two RBA speeches this morning and some key Chinese economic reports, GDP, retail sales and industrial output at 1pm.
Woodside Energy is set to release its quarterly production results; Liontown Resources (ASX:LTR) is due to come out of a trading halt; and Newcrest Mining trades ex-dividend.
On the small cap front
The S&P ASX Small Ordinaries gained 0.23% yesterday.
You can read more about the following throughout the day.
- Galileo Mining Ltd (ASX:GAL, OTC:GLMGF) drilling results identify a new target zone Jimberlana South prospect and new prospective trends with wide zones of anomalous palladium and platinum results at North Callisto at its Norseman project in WA.
- St George Mining Ltd (ASX:SGQ) field teams are back on the ground undertaking lithium exploration at its flagship Mt Alexander Project in WA following up on multiple target areas for lithium mineralisation.
- Hawsons Iron Ltd (ASX:HIO) has started a follow-up exploration drilling program to further define the extent, tonnage and grade of shallow magnetite mineralisation discovered in the Fold and Limb Zone south of the existing mineral resource at the Hawsons Iron Project.
- Noxopharm Ltd (ASX:NOX, OTC:NOXOF) has new data that shows its SOF-VAC™ mRNA vaccine enhancer significantly reduces inflammation driven by mRNA in an animal model.
- Aurumin Ltd (ASX:AUN) has agreed to sell its Mt Dimer mining tenements that host the high-grade Lightning and Golden Slipper deposits, 120 kilometres north-east of Southern Cross, to Beacon Minerals.