Another flat day for the ASX is tipped today after the market closed just 0.4% higher yesterday, while overseas markets were mixed overnight.
The ASX200 finished up 27 points (0.37%) yesterday at 7,338, led by Financials (1.21%), Communications (+0.95%) and IT (+0.87%). All sectors were in the green except Utilities (-0.27%), Real Estate (-0.72%) and Healthcare (-0.89%).
The world’s second-largest economy, China, fell into deflation in July with CPI down 0.3% on the year. This marked China’s first year-on-year consumer price index decline in two years, adding pressure on Beijing to release more direct policy stimulus.
In the US overnight, indices fell for a second session in a row on Wednesday, dragged down by tech stocks, with the sell-off intensifying towards the end of the day. This comes ahead of Thursday’s release of the July consumer-price index, figures that are closely watched as the Fed works to bring reducing inflation back toward its 2% target.
What happened overnight?
Here’s what saw (source CommSec):
US markets
US sharemarkets fell on Wednesday as investors awaited inflation data due later this week. Banks extended losses after Moody's downgraded several small and mid-sized banks on Tuesday. Shares of Goldman Sachs (NYSE:GS) slid 1.6%, JPMorgan Chase (NYSE:JPM) dipped 1.3%, Bank of America (NYSE:BAC) fell by 1.3% and Wells Fargo (NYSE:WFC) shed 1.7%.
Nvidia, which has more than tripled this year amid the artificial intelligence frenzy, slipped 4.7%. Lyft shares tumbled 10% as the company signalled it would double down on competitive pricing to catch up with rival Uber.
Shares of the electric vehicle maker Rivian Automotive shed 9.9% a day after it reported a smaller-than-expected loss. Roblox shares dropped 21.9% after the online gaming platform fell short of second-quarter estimates.
Casino owner Penn Entertainment's shares surged 9.1% on a US$2 billion deal with Walt Disney (NYSE:DIS)'s ESPN to launch a sports betting business. Disney's shares dipped 0.7% ahead of its results.
The Dow Jones index fell by 191 points or 0.5%. The S&P 500 index slid 0.7% and the Nasdaq index shed 162 points or 1.2%.
European markets
European sharemarkets ended higher on Wednesday on a boost from energy stocks, which rose by 2.3%, tracking oil prices higher. Italian lenders rebounded from the previous session's sharp losses after the government eased its stance on the windfall tax on banks.
Shares of Finecobank, Banco BPM and UniCredit added between 4.4% and 7.1%. European bank shares gained 1%. Delivery Hero (ETR:DHER, OTCQX:DLVHF) shares advanced 4.7% after the German online takeaway food company raised its full-year revenue outlook.
The continent-wide FTSEurofirst 300 index rose by 0.4%. And in London the UK FTSE 100 index gained 0.8%
Currencies
Were mixed against the US dollar in European and US trade.
- The Euro rose from US$1.0960 to US$1.0992 and was near US$1.0970 at the US close.
- The Aussie dollar fell from US65.69 cents to US65.20 cents and was near US65.30 cents at the US close.
- The Japanese yen eased from 143.00 yen per US dollar to JPY143.74 and was near JPY143.70 at the US close.
Global oil prices rose by up to 1.8% on Wednesday after a steep drawdown in US fuel stockpiles.
US gasoline stocks fell by 2.66 million barrels last week, US government data showed, compared with analysts' expectations for a small decline.
- The Brent crude price rose by US$1.38 or 1.6% to US$87.55 a barrel, the highest since January 27.
- The US Nymex crude price added US$1.48 or 1.8% to US$84.40 a barrel, its highest since November 2022.
- The copper futures price rose by 0.5% after data showing China fell into deflation fuelled hopes for more stimulus.
- Aluminium futures price dipped 0.5%
- The gold futures price fell by US$9.30 or 0.5% to US$1,950.60 an ounce.
- Spot gold was trading near US$1,914 an ounce at the US close.
- Iron ore futures rose by US29 cents or 0.3% to US$104.70 a tonne on concerns over China's steel output curbs.
In Australia, weekly payroll jobs data is released. Earnings are scheduled for AGL Energy (ASX:AGL) (ASX:AGK), Alliance Aviation, AMP, Arena REIT, Boral, Downer EDI and QBE Insurance. Rio Tinto (ASX:RIO) shares trade ex-dividend.
In the US, data on consumer price inflation (CPI) and weekly initial jobless claims are released with the monthly budget statement. Alibaba (NYSE:BABA), Krispy Kreme, News Corp (NASDAQ:NWSA) (NASDAQ:NWS) and Ralph Lauren (NYSE:RL) are all expected to release earnings results.
On the small cap front
The S&P ASX Small Ordinaries lost 0.06% yesterday. You can read more about the following throughout the day.
- Helix Resources Ltd (ASX:HLX) in its JV with Aeris Resources Ltd (ASX:AIS, OTC:ARSRF) is planning to test several promising early-stage copper targets.
- Polymetals Resources Ltd (ASX:POL) receives $250,000 of a $500,000 grant from the NSW Government Critical Minerals Activation Fund.
- Technology Metals Australia Ltd (ASX:TMT) progresses key infrastructure to support the construction and operation of its Murchison Technology Metals Project.
- Latin Resources Ltd (ASX:LRS, OTC:LRSRF) metallurgical test results: first bulk DMS tests produced a high-quality concentrate.
- Solis Minerals Ltd (ASX:SLM, TSX-V:SLMN, OTCQB:SLMFF) completes a new magnetic drone survey and reprocessing of historical magnetic data in Peru.
- Evion Group NL (ASX:EVG)’s expandable graphite plant advances to commence production.
- Hygrovest Ltd (ASX:HGV, OTC:MMJJF) reports investment portfolio performance; trading at 59% discount to NTA.