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The morning catch up: ASX to rise after tech stocks lift US markets

Published 09/10/2024, 09:45 am
Updated 09/10/2024, 10:00 am
© Reuters The morning catch up: ASX to rise after tech stocks lift US markets
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The ASX looks set to follow US markets higher this morning, with ASX 200 futures up 0.2% to 8,236 points.

US markets rose overnight as a rally in the world’s largest technology companies drove stocks higher with the market rebounding from its worst session in a month.

Investors also shifted their attention to the upcoming third-quarter earnings season and inflation data, which could offer some clues on the US Federal Reserve's rate cut trajectory.

Most S&P 500 sectors were up, with the information technology sub-index leading the gains with a 2.1% rise.

  • Chip giant Nvidia gained 4% with artificial intelligence software applications company Palantir Technologies (NYSE:PLTR) up 6.6%.
  • PepsiCo (NASDAQ:PEP) shares rose 1.9% after the snack maker trimmed its forecast for annual sales growth, but reported adjusted earnings per share above estimates.
  • Energy stocks slumped 2.6% as crude oil prices dropped.
  • The materials sector fell 0.4% on waning optimism over China's stimulus measures.
  • US-listed shares of Chinese companies slid with shares of Alibaba (NYSE:BABA), JD.com and PDD Holdings down between 5.4% and 7.5%.

European markets

European sharemarkets fell on Tuesday, with investors reacting while energy shares fell 2.3%.

Shares of spirits makers Remy Cointreau and Pernod Ricard (EPA:PERP) dropped by 6.4% and 4.2%, respectively, as China announced provisional anti-dumping measures on brandy imports from the European Union.

Currencies

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

  • The Euro fell from US$1.0996 to US$1.0961 and was near US$1.0980 at the US close.
  • The Aussie dollar rose from US67.19 cents to US67.50 cents and was near US67.45 cents at the US close.
  • The Japanese yen eased from 147.39 yen per US dollar to JPY148.37 and was near JPY148.30 at the US close.

Commodities

Global oil prices fell on Tuesday as fears of supply disruptions from the conflict between Israel and Iran eased after Iranian-backed Hezbollah signalled support for a ceasefire proposal put forth by Lebanon's government.

  • The Brent crude price fell by US$3.75 or 4.6% to US$77.18 a barrel.
  • The US Nymex crude price shed US$3.57 or 4.6% to US$73.57 a barrel.

Base metal prices slumped after a hotly anticipated briefing by China's top economic planner ended without new pledges to boost government spending.

  • Copper futures slipped 2.4%.
  • Aluminium futures dropped 3.6%.

The gold futures price fell by US$30.60 or 1.1% to US$2,635.40 an ounce on Tuesday as recent US employment data lowered expectations for a bigger rate cut while markets awaited minutes of the US Federal Reserve's latest policy meeting for fresh signals.

  • Spot gold was trading near US$2,622 an ounce at the US close.

Iron ore futures slid US$6.09 or 5.4% to US$106.30 a tonne yesterday as some investors unwound long positions to lock in profits with some analysts saying top consumer China missed expectations for unveiling more forceful stimulus.

What’s on today?

In Australia, building activity data is released. RBA assistant governor Christopher Kent speaks. REA Group hosts an AGM.

The Reserve Bank of New Zealand (RBNZ) hands down its interest rate decision.

In the US, the Federal Reserve Open Market Committee (FOMC) issues its latest meeting minutes.

What’s happening in small caps?

  • Sarytogan Graphite Ltd (ASX:SGA) has delineated its first target at the Baynazar Copper Exploration Project in Kazakhstan targeting copper porphyry mineralisation.
  • Strickland Metals Ltd (ASX:STK) diamond drilling has hit 545.7 metres at 1.1 g/t gold equivalent at its Rogozna Gold and Base Metals Project in Serbia as the project continues to deliver “exceptional” results.
  • Astral Resources NL (ASX:AAR) infill drilling demonstrates strong continuity within known gold mineralisation at the Mandilla Gold Project’s Theia deposit, supporting a resource upgrade from inferred to indicated status.
  • Helix Resources Ltd (ASX:HLX) reports high-grade extensions at the Muriel Tank goldfield in NSW with rock chip results of up to 17.92 g/t gold from new vein areas not previously explored.
  • Dynamic Metals Ltd (ASX:DYM) identifies high-grade soil anomaly at the Cognac West prospect with peak assay of 2.1 g/t gold (2.1ppm) in soils discovered.
  • Read more on Proactive Investors AU

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