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The morning catch up: federal government pulls off second consecutive surplus as ASX tipped to rise

Published 30/09/2024, 09:26 am
© Reuters The morning catch up: federal government pulls off second consecutive surplus as ASX tipped to rise
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Futures trading points to a rosy start to the morning on the ASX, with the index set to climb to a new high, bucking the trend on Wall Street.

The S&P 500 slipped 0.1% on Friday, dragged by a decline in information technology stocks, while the Dow Jones rose 0.3%, buoyed by energy shares as crude oil prices increased.

The Nasdaq index dropped 0.4% on the back of a 2.1% fall in Nvidia shares and a 1.8% dip in Costco Wholesale (NASDAQ:COST).

Federal government achieves surplus

The Australian government has pulled in a budget surplus for the second successive year.

Treasurer Jim Chalmers can lay claim to this win – it’s the first time a government has achieved two consecutive budget surpluses in 20 years.

The final budget position for the 2023-24 financial year shows the budget in the black by $15.8 billion – a $6.4 billion improvement.

European markets closed higher, with the continent-wide FTSEurofirst 300 adding 0.4%, led by China-exposed chemicals stocks and autos, which gained 2.6% and 2.1%, respectively.

The FTSE 100 mirrored this rise, gaining 1.1% for the week. Chinese stimulus measures bolstered sentiment across Europe.

Currencies and commodities

Global oil prices rose on Friday, with Brent crude up 0.5% to US$71.98 a barrel, though Brent and Nymex crude prices were down 3.4% and 5.2%, respectively, over the week.

Base metals performed well, with aluminium surging 7.4% and copper jumping 6.1% over the week.

Gold prices fell 1% to US$2,668.10 an ounce but gained 0.8% for the week.

Looking ahead, Australian private sector credit data will be released, while Liontown Resources (ASX:ASX:LTR) issues earnings and ResMed holds an investor day.

In China, PMIs are due, and in the US, all eyes are on Federal Reserve Chair Jerome Powell’s speech.

Market snapshot

  • ASX 200 futures: +0.3% to 8,277 points
  • Australian dollar: +0.1% 69.02 US cents
  • S&P 500 (Friday): -0.1% to 5,738 points
  • Nasdaq (Friday): -0.5% to 20,009 points
  • FTSE (Friday): +0.4% at 8,321 points
  • EuroStoxx (Friday): +0.7% to 523 points
  • Spot gold: -0.5% to $US2,658/ounce
  • Brent crude: -2.4% at $US71.90/barrel
  • Iron ore (Friday): +3.6% to $US102.10/tonne
  • Bitcoin: -0.2% to $US65,706

Source: ABC

What’s happening in small caps?

  • Sprintex Ltd (ASX:SIX) has successfully completed hot environment testing under its A$1 million phase one evaluation contract with Mest Water.
  • RemSense Technologies Ltd (ASX:REM) has been awarded its second contract under the new global services agreement with Chevron (NYSE:CVX) Global Services Corporation.
  • Cyprium Metals Ltd (ASX:CYM, OTC:CYPMF) has closed its loan facility with Glencore (LON:GLEN) International AG and affiliates and executed offtake agreements for copper products.
  • Volt Resources Ltd (ASX:VRC, OTC:VLTRF) says RiverFort Global Opportunities PCC Ltd has agreed to proceed with second advance of A$500,000 pursuant to the terms of an agreement made in April.
  • Yandal Resources Ltd (ASX:YRL) has now implemented the last step of its board and senior management succession plan as outlined in a May announcement to the ASX.
  • Read more on Proactive Investors AU

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