In today's pre-market scenario, ASX futures rose 48 points or 0.7% to 7,095 this morning, alongside a 0.7% uptick in the local currency.
Major US benchmarks rebounded in the overnight session and finished near best levels, with the US earnings season off to a good start and set to record the first year-on-year earnings growth in 12 months.
The Dow Jones gained 0.9%, the S&P 500 increased 1.1%, and the Nasdaq added 161 points or 1.2%. Shares of tech giants such as Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN) saw gains between 1.3% and 2.1%. European markets also closed higher, led by retail stocks rallying 2%.
In other news, Apple (NASDAQ:AAPL)'s iPhone 15 sales have been weaker-than-expected in China, while Fortescue (ASX:FMG) rose to a two-month high.
At 11:30 this morning the Reserve Bank of Australia is expected to release minutes from its latest board meeting, which market analysts and investors will no doubt scrutinise for clues on future monetary policy adjustments, as global and domestic economic factors continue to evolve.
Alongside RBA's minutes, Australia's weekly consumer confidence data is due for release.
Recession delayed?
According to Principal Asset Management, the timing of a recession remains uncertain but certainly not off the table.
The company’s analysts believe policymakers will retain a hawkish disposition, continuing to defy expectations for rate cuts in the fourth quarter of this year, but building for a soft landing in 2024.
“Though economic data has been resilient, key market indicators continue to signal an impending recession, and we strongly believe there is further economic slowing on the horizon,” the company said in a statement.
New Zealand CPI below expectations
New Zealand's CPI grew by 5.6% annually in the September quarter, falling short of the forecasted 5.9% rise. Food emerged as the largest contributor to inflation.
"Prices are still increasing, but are increasing at rates lower than we have seen in the previous few quarters,” NZ Stats consumer prices senior manager Nicola Growden said.
Currencies and commodities
Global oil prices recorded a decline of over 1% on Monday, reacting to reports that the United States is in talks to ease sanctions on Venezuela, contingent on the setting of a presidential election date in the South American nation.
Market participants do not expect the ongoing Israel-Hamas conflict to disrupt crude supplies in the short term.
The Brent crude price retreated by US$1.24 or 1.4% to settle at US$89.65 a barrel, while the US Nymex crude price saw a decrease of US$1.03 or 1.2%, closing at US$86.66 a barrel.
Base metal prices were mixed yesterday. Copper futures experienced a marginal rise of 0.2% following an injection of liquidity by China's central bank, reflecting potential for increased demand.
In contrast, the price of aluminium futures declined by 0.6%. The contrasting trajectories of these key metals suggest that market sentiments are influenced by both macroeconomic factors and specific industry developments.
What’s happening in small caps?
The S&P/ASX Small Ordinaries closed at 2,665.87 yesterday, down 0.27% on the previous day.
Making news this morning, which you can read more about throughout the day with Proactive are: