The ASX could see a fresh all time high this morning, with the ASX SPI 200 Futures set to open up 63 points (0.74%) at 8,528.
December is typically a bullish month for stocks — the ASX has gained 1.64% on average in December over the past 30 years.
Woolworths feels strike action
Woolworths has suffered a $50 million loss in food sales due to an ongoing strike at its distribution centres in Victoria and NSW, which began on November 21. The supermarket giant has been in negotiations with the United Workers Union (UWU) for more than four months, but discussions remain unresolved.
The union is demanding pay increases exceeding 25% over three years, which would significantly outpace inflation, amid the company’s efforts to keep grocery prices affordable for customers dealing with cost-of-living pressures.
UWU is also seeking the removal of enforceable performance standards, limiting Woolworths' ability to manage productivity.
Woolworths CEO Amanda Bardwell has called for respect towards staff as the strike causes supply shortages.
The retailer’s latest offer includes raising hourly rates by up to 40% above the award rates at the affected sites. Despite these efforts, the impasse continues as the strike remains unresolved, further impacting Woolworths’ operations.
Weak conditions hit Collins Foods
Collins Foods, which operates 359 KFC stores across Australia and Europe and a growing number of Taco Bell outlets in Australia, has reported a more than 50% drop in its half-year profit to October 13.
The company also reduced its dividend, citing weak economic conditions and cautious consumer spending as factors reducing demand for fast food.
Overseas markets
It was a mixed session on Wall Street overnight — the Dow Jones index fell by 129 points or 0.3% but the S&P 500 index gained 0.2% and the Nasdaq index added 186 points or 1% — both closing at record highs.
The S&P 500 and the Nasdaq indexes were boosted by technology stocks while investor focus remained on a slew of US economic data this week.
Most megacap and growth stocks were higher. Tesla (NASDAQ:TSLA) led the gains, up 3.5%, after Stifel raised its target price on the stock to US$411 from US$287.
- Apple (NASDAQ:AAPL) reset its record high, up 1%.
- Intel (NASDAQ:INTC) fell 0.5% after the chipmaker announced CEO Pat Gelsinger's retirement.
- Super Micro Computer jumped 28.7% after the AI server maker began its search for a new finance chief based on recommendations made by a special committee formed to look into the company's accounting practices.
- The broader semiconductor index was up 2.6%.
European sharemarkets closed higher on Monday.
- The continent-wide FTSEurofirst 300 index rose 0.7%.
- In London, the UK FTSE 100 index gained 0.3%.
France's CAC 40 index ended flat after dropping more than 1% earlier in the session after far-right and left-wing parties including Marine Le Pen's National Rally said they would vote for a no-confidence motion against French Prime Minister Michel Barnier.
HCOB's final eurozone manufacturing purchasing managers' index (PMI), compiled by S&P Global, sank to 45.2 in November, matching a preliminary estimate and further below the 50-mark separating growth from contraction.
Currencies
Currencies were mixed against the US dollar in European and US trade.
- The Euro fell from US$1.0537 to US$1.0461 and was near US$1.0500 at the US close.
- The Aussie dollar dipped from US65.09 cents to US64.42 cents and was near US64.75 cents at the US close.
- The Japanese yen firmed from 150.73 yen per US dollar to JPY149.13 and was near JPY149.55 at the US close.
Commodities
Global oil prices were little changed on Monday, as optimism around strong factory activity in China was largely offset by concerns that the US Federal Reserve will not cut interest rates again at its December meeting.
- The Brent crude price dipped US1 cent or 0.01% to US$71.83 a barrel.
- The US Nymex crude price rose US10 cents or 0.1% to US$68.10 a barrel.
Base metal prices retreated on Monday.
- Copper futures edged down 0.1% as a stronger US dollar triggered a sell-off despite signs of recovering growth in China's manufacturing sector.
- Aluminium futures dipped 0.1%.
The gold futures price fell US$22.50 or 0.8% to US$2,658.50 an ounce on Monday, snapping a four-day winning streak, as the US dollar staged a sharp rally and investors braced for pivotal economic data and US Federal Reserve insights on the path of interest rates. Spot gold was trading near US$2,638 an ounce at the US close.
Iron ore futures rose US1 cent or less than 0.1% to US$105.32 a tonne on Monday, supported by upbeat factory data in China, but signs of faltering demand capped gains.
What’s happening in small caps?
Predictive Discovery Ltd (ASX:ASX:PDI (OTC:IDXG), OTC:PDIYF) has extended the mineralisation along strike at the 800W target via resource definition drilling at its 5.38-million-ounce Bankan Gold Project in Guinea.
PDI managing director Andrew Pardey said: “Drilling results from 800W continue to be positive, confirming potential for a satellite deposit in the NEB area that can add ounces and provide mine planning flexibility with future upside potential. We are now completing resource modelling for 800W and a maiden Mineral Resource estimate is planned for early 2025.”
Alto Metals Ltd (ASX:AME) has announced that the scheme of arrangement under which Brightstar Resources Ltd (ASX:BTR) will acquire 100% of the shares in Alto is now legally effective. As the scheme of arrangement takes effect, the shares of Alto Metals have been suspended from trading on the ASX.
Shareholders who hold Alto shares at the record date of 4:00pm (AWST) on Wednesday, December 4, 2024, will receive four new Brightstar shares for every one Alto share held.