The Australian share market is set to open higher this morning — the ASX SPI futures were up 21 points or 0.27% at 9am AEDT.
This follows a mixed session on Wall Street overnight as US investors await key economic information later this week.
The US consumer confidence index fell from 110.9 to 106.7 in February, against expectations of a rise to 115. The Federal Reserve is due to provide an update on its preferred inflation gauge — the personal consumption expenditures (PCE) index — on Thursday.
Locally, earnings season continues today with 42 of the ASX 200 companies having reported earnings so far. Today’s releases include earnings updates from Flight Centre (ASX:FLT) and Worley.
The ABS is set to release January inflation data today at 11:30am AEDT. Expectations are for a 3.6% rise on-year versus 3.4% in December.
What happened overnight?
Here’s what we saw (source CommSec):
US markets
US sharemarkets were mixed on Tuesday ahead of US inflation and other economic data that could shed light on the possible timing of a US Federal Reserve interest rate cut.
- The Dow Jones index fell by 97 points or 0.3%.
- The S&P 500 index gained 0.2%.
- The Nasdaq index added 59 points or 0.4%.
Chevron (NYSE:CVX) and Hess fell between 1.5% and 3.1% after Exxon Mobil (NYSE:XOM) said it was considering a move that could break up the companies' US$53 billion merger and increase its share of Guyana's giant offshore oil reserves.
Viking Therapeutics (NASDAQ:VKTX) surged 121% following a weight loss drug trial success. But Amgen (NASDAQ:AMGN), which is developing a weight loss drug, dropped 2.8%, pressuring the Dow Jones.
A bullish outlook from Norwegian Cruise Line pushed its shares 19.8% higher.
Retail giant Macy's (NYSE:M) jumped 3.4% after announcing it would close around 150 of its struggling stores after reporting a revenue miss in the prior quarter. Lowe's gained 1.8% after posting an earnings beat. Zoom Video soared 8% following earnings reports that exceeded Wall Street expectations.
European markets
European sharemarkets were little changed on Tuesday as investors awaited this week's US inflation data that could shed some light on when interest rate cuts might commence this year.
- The continent-wide FTSEurofirst 300 index rose by 0.2%.
- The UK FTSE 100 index was flat.
Basic resources stocks rose by 1.7%, recovering from Monday's four-month low, tracking higher metal prices. Tech stocks jumped 1% to its highest level since December 2000. Media stocks fell 1.2%.
Currencies
Currencies were weaker against the US dollar in European and US trade.
- The Euro fell from US$1.0865 to US$1.0832 and was near US$1.0845 at the US close.
- The Aussie dollar slid from US65.57 cents to US65.31 cents and was near US65.45 cents at the US close.
- The Japanese yen eased from 150.12 yen per US dollar to JPY150.57 and was near JPY150.50 at the US close
Commodities
Global oil prices rose more than 1% on Tuesday as sources said OPEC+ is considering extending voluntary oil output cuts into the second quarter to provide additional support.
- The Brent crude price rose by US$1.12 or 1.4% to US$83.65 a barrel.
- The US Nymex crude price gained US$1.29 or 1.7% to US$78.87 a barrel.
Base metal prices rose on Tuesday, lifted by hopes that next week's annual parliamentary meeting in China will set the path for further economic stimulus.
- Copper futures gained 0.2%.
- Aluminium futures added 0.1%.
The gold futures price rose by US$5.20 or 0.3% to U$2,044.10 an ounce on Tuesday. Spot gold was trading near US$2,030 an ounce at the US close.
Iron ore futures slid US27 cents or 0.2% to US$125.84 a tonne, despite reports that India is considering a potential export tax on low-grade iron ore.
What’s on today?
In Australia, the monthly consumer price index (CPI) indicator is released with construction work done data.
- Flight Centre, Harvey Norman, Kelsian, Light & Wonder, NextDC, Perpetual, Spark NZ, Steadfast, Strike Energy and Worley all release earnings.
- Beach Energy (ASX:BPT), EVT, Fortescue (ASX:FMG), Lottery Corp, Telstra and Woolworths shares trade ex-dividend.
The Reserve Bank of New Zealand (RBNZ) hands down its policy decision.
US economic growth (GDP) data is due tonight with the advance goods trade balance and wholesale inventories. Paramount Global (NASDAQ:PARA), Salesforce and Snowflake issue earnings.
On the small cap front
The S&P ASX Small Ordinaries lost 0.34% yesterday, while the ASX 200 finished 0.13% higher.
You can read more about the following throughout the day.