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The morning catch up: Australian markets poised for modest gains; Fed expected to maintain status quo

Published 30/04/2024, 09:30 am
© Reuters.  The morning catch up: Australian markets poised for modest gains; Fed expected to maintain status quo
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The ASX is expected to open with slight gains today, following positive cues from Wall Street, where key stocks like Tesla (NASDAQ:TSLA) and Apple (NASDAQ:AAPL) saw sharp increases.

US financial markets were upwardly mobile ahead of the Federal Reserve's policy meeting, at which the bank is expected to maintain the status quo on interest rates.

Tesla surges

Tesla's shares surged by 15.3% following forward steps on its regulatory approval in China for its driver-assistance program while Apple increased 2.5% after reigniting discussions with OpenAI regarding AI technology applications.

The Dow Jones closed up 146 points, a 0.4% increase, buoyed by notable rises in Boeing (NYSE:BA) and Domino's Pizza stocks. Conversely, major tech firms such as Alphabet (NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT) experienced declines.

European markets showed mixed results. The mining sector outperformed, while retail stocks underperformed. Philips recorded a significant jump of 29.4% following favourable developments in its US litigation concerning recalled breathing devices.

Currencies and commodities

Global currencies held their own against the greenback overnight. The Euro rose from US$1.0689 to US$1.0729 and was near US$1.0720 at the close of trade.

The Aussie dollar was also strong, moving from 65.44 US cents to 65.73 US cents and was near 65.65 US cents at the end of the day. The yen firmed from 157.23 yen per US dollar to JPY154.53, closing near JPY156.30.

On the commodities front, oil prices decreased as ceasefire talks in the Middle East alleviated concerns of an extended regional conflict. Meanwhile, base metals saw an uptick with copper reaching two-year highs due to ongoing supply concerns.

Ampol Ltd reported a 7.3% decrease in first-quarter output at its Queensland-based Lytton refinery, with production falling to 1,381 million litres from 1,490 million litres year-over-year.

The Lytton Refiner Margin also saw a significant reduction, dropping 21% to US$11.80 per barrel from US$14.90. These declines were primarily due to a refinery-wide steam outage and disruptions in the Red Sea, though operations normalised in early April.

Across the group, Ampol's total sales volumes decreased by 1.7% although its convenience retail business achieved earnings slightly above those of the same quarter last year, indicating some operational successes amid the broader challenges.

Copper futures rose 2.1% to two-year highs on the back of supply concerns thrown into relief by BHP (ASX:BHP) Group's bid for Anglo American (JO:AGLJ). Aluminium futures edged up 0.3%.

Gold futures were up by US$10.50 or 0.4% to US$2,357.70 an ounce on Monday, while spot gold was trading near US$2,336 an ounce at the US close.

Iron ore futures lifted 38 US cents or 0.3% to US$110.54 a tonne, despite a fall in China's industrial profits in March.

A slew of economic data releases and corporate earnings announcements are anticipated this week.

In Australia, entities such as Ampol and Coles are scheduled to update on sales, while major US firms including Amazon (NASDAQ:AMZN) and McDonald's (NYSE:MCD) are expected to disclose their earnings.

Read more on Proactive Investors AU

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