Aussie shares are poised for a dip after nearly hitting a record high earlier this week.
Investors are subdued as the Australian Bureau of Statistics (ABS) prepares to release the first round of consumer price data for 2024, which will weigh upon the Reserve Bank’s next rate decision and those in the coming months.
Over in the US, policymakers are scheduled to release a statement, with Federal Reserve chairman Jerome Powell to conduct a press conference shortly thereafter – this will no doubt be on investors’ minds.
ASX futures were only a point higher just after 9:00 am this morning, while the dollar slipped 0.1% to 66.01 US cents – futures had been leaning south but recovered as the trading day drew to a close in the US.
That trading day saw the Dow Jones rising by 0.4%, while the S&P 500 and the Nasdaq saw declines of 0.01% and 0.7% respectively.
Tech stocks shaky
Key stocks in New York, including technology and mining giants, witnessed varied movements. BHP (ASX:BHP) dipped by 0.2%, Rio Tinto (ASX:RIO) fell by 1.2%, whereas Atlassian (NASDAQ:TEAM) gained 0.7%.
In the tech sector, Tesla (NASDAQ:TSLA) climbed by 0.6%, but Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) registered declines.
The sector is under scrutiny after a report by analyst Ming-Chi Kuo, indicating a potential drop in iPhone demand for 2024, particularly in China. This forecast contributed to Apple leading the NYSE Fang Index lower.
Post-market hours, Microsoft and Alphabet (NASDAQ:GOOGL) announced their fourth-quarter results, surpassing analysts' expectations in both earnings and revenue.
Despite all the movements, there is good economic news on the horizon, says the International Monetary Fund (IMF), which is predicting a 'soft landing' for the global economy.
The fund anticipates a quicker easing of inflation and the potential for interest rate reductions in developed economies in the latter half of 2024.
Currencies and commodities
The cryptocurrency market was buoyant, with Bitcoin marking a 1.3% increase to $US43,583 earlier this morning.
In commodities, spot gold saw a marginal decrease of 0.1% to $US2032.15 per ounce. Brent crude oil, however, rose by 1.1% to $US83.30 a barrel, and iron ore prices decreased by 1.7% to $US133.15 a tonne.
In bond markets, the 10-year yields stood at 4.06% in the US, 4.14% in Australia, and 2.27% in Germany.
Domestically, energy stocks might see activity following a rise in oil prices and Saudi Aramco’s decision to maintain its production capacity.
Market snapshot
- ASX 200 (Tuesday close): +0.3% at 7,600 points.
- Australian dollar: -0.1% at 66 US cents.
- Wall Street: Dow Jones: +0.4%, S&P 500 -0.1%, Nasdaq -0.8%.
- Bitcoin: +1.1% at $US43,639.
- Spot gold: +0.2% at $US2,036/ounce.
- Brent crude: +0.5% at $US82.83/barrel.
- Iron ore: -3% at $US131.30/tonne.
What’s happening in small caps?
The S&P/ASX Small Ordinaries closed at 2,928.45 yesterday, up 0.77% on the previous day.
Making news this morning, which you can read more about throughout the day with Proactive: