📉 Nikkei is down nearly 5% -> here are 43 recession-proof Japanese stocks from our screenerUnlock Now

The morning catch up: ASX to start the week on a brighter note; US inflation data pending with rate rise expected

Published 10/07/2023, 09:48 am
Updated 10/07/2023, 10:00 am
© Reuters The morning catch up: ASX to start the week on a brighter note; US inflation data pending with rate rise expected
AUD/USD
-
XAU/USD
-
DJI
-
GC
-
HG
-
LCO
-
TIOc1
-

Following a rough day on Friday when the Australian share market fell to its lowest level since late March and closed the week down 2.2%, things look brighter as a new week begins. ASX futures were up 25 points or 0.4% to 7,013 on the weekend.

US stocks also drifted lower on a quiet trading day, with the case growing for the Fed to raise rates by a quarter of a per cent at its next meet.

As the week’s trade closed, the Dow Jones was down 187 points or 0.6%, the S&P 500 slipped 0.3% and the Nasdaq shed 18 points or 0.1%.

Over the course of the week, the Dow lost 2%, the S&P 500 1.2% and the Nasdaq 0.9%.

Jobs data puts pressure on

Jobs data in the US from June was robust, with employment rising by 209,000 and the unemployment rate easing from 3.7% in May to 3.6% in June and participation steady at 62.6%.

Also putting pressure on inflation were average hourly earnings, which rose by 0.4% in June to be up 4.4% on a year ago.

With this data in place, all eyes are now on the latest CPI report, due Wednesday, which will strongly influence the rates decision.

Something else to watch on Wednesday will be the meeting of the Reserve Bank of New Zealand, following that country’s technical recession status.

Currencies and crude

Currencies were stronger against the US dollar in European and US trade, with the Euro up from US$1.0866 to US$1.0972 and closing at US$1.0965.

The Aussie dollar was buoyant, moving from US66.21 cents to US67.00 cents to rest near US66.75 cents at the US close.

The Japanese yen firmed from 143.63 yen per US dollar to JPY142.05 and was near JPY142.10 at the US close.

Oil prices scaled to about 3%, a nine-week high, as the week ended, on the back of supply concerns which have outweighed fears that further interest rate hikes could slow global economic growth and reduce demand for oil.

Brent crude was up US$1.95 or 2.5% to US$78.47 a barrel, while US Nymex crude added US$2.06 or 2.9% to US$73.86 a barrel – both benchmarks ended the week up about 5%.

Commodities

Base metal prices rose on Friday, with copper futures gaining 1.3% as the US dollar weakened and stocks in London Metal Exchange warehouses declining to their lowest since April.

Aluminium futures were up 0.4%.

Over the week, copper rose by 0.7% but aluminium fell by 0.2%.

Gold futures were up by US$17.10 or 0.9% to US$1,932.50 an ounce. Spot gold was trading near US$1,924 an ounce at the US close.

Iron ore futures lost US$1.73 or 1.5% to US$110.54 a tonne following concerns about steel output curbs and extreme heat warnings in China. Over the week, iron ore fell by 1%.

What’s happening in small caps?

The S&P/ASX Small Ordinaries closed at 2,759.1 on Friday, down 1.67% from the previous day.

Making news this morning, which you can read more about throughout the day with Proactive, are:

  • Alkane Resources Ltd (ASX:ALK) has released the latest exploration results for drilling in the region around the company’s Tomingley Gold Operations in Central West New South Wales.
  • The board of Kin Mining NL (ASX:KIN) has appointed highly experienced mining executive Rowan Johnston as executive chairman.
  • Forrestania Resources Ltd (ASX:FRS) has earned a 50% interest in the compelling Hydra Lithium Project in northern Quebec, Canada.
  • Carnarvon Energy Ltd (ASX:CVN) has entered into a binding agreement to divest a 10% interest in its Bedout assets to OPIC Australia Pty Limited, a wholly owned subsidiary of CPC Corporation, Taiwan (CPC), Taiwan’s national oil and gas company.]
  • Emyria Ltd (ASX:EMD) has successfully recruited the first patient for its Phase 2B, MDMA-assisted therapy trial for PTSD, with the first treatment expected in August.
  • Read more on Proactive Investors AU

    Disclaimer

    Latest comments

    Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
    Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
    Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
    It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
    Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
    © 2007-2024 - Fusion Media Limited. All Rights Reserved.