Modest falls on Wall street overnight are set to lead the ASX lower this morning with the SPI 200 Futures down 20 points (0.26%) at 7,819.
The highlight of the day ahead is the ABS release of February consumer price index (CPI) data at 11.30am AEDT.
CBA economists expect an acceleration of inflation to 3.8% in the 12 months to February — up from 3.4% in the 12 months to January — due to higher petrol prices, strong growth in housing costs and less retail discounting. National Australia Bank economists forecast today's CPI to head back up to 3.6%.
What happened overnight?
US markets
US sharemarkets fell on Tuesday, giving up modest gains late in the session, as investors awaited US economic data in a holiday-shortened week to gauge the US Federal Reserve's policy path.
The Dow Jones index fell by 31 points or 0.1%, the S&P 500 index dipped 0.3% and the Nasdaq index shed 69 points or 0.4%
- Chip giant Nvidia led losses in megacaps, ending down 2.5%.
- United Parcel Service (NYSE:UPS) slid 8.2% as Wall Street digested a long-term forecast update.
- Boeing (NYSE:BA) fell 2% after credit ratings provider Moody's placed its Baa2 senior unsecured rating on review for a downgrade from stable as safety concerns weigh on the jetliner's production and revenue.
- Tesla (NASDAQ:TSLA) gained 2.9% after CEO Elon Musk said the electric vehicle maker would give a one-month trial of its Full Self-Driving driver-assist technology to existing and new customers in the US.
- McCormick (NYSE:MKC) added 10.5% after the spice maker beat market expectations for first-quarter sales and profit.
US government bond yields were little changed on Tuesday following the release of mixed economic data. US consumer confidence held steady, durable goods orders climbed but home prices climbed less than expected. Traders awaited key US inflation data later this week to gauge when the US central bank may begin cutting interest rates.
European markets
European sharemarkets ended higher on Tuesday, with retail stocks up 1.6% while mining stocks fell 0.5%.
In Germany, the GfK consumer confidence index rose from -28.8 in March to -27.4 in April (survey: -28).
- The continent-wide FTSEurofirst 300 index rose by 0.2% to a record closing high.
- In London, the UK FTSE 100 index also gained 0.2%.
Currencies
Currencies were weaker against the US dollar in European and US trade.
- The Euro fell from US$1.0863 to US$1.0823 and was near US$1.0825 at the US close.
- The Aussie dollar dipped from US65.58 cents to US65.28 cents and was near US65.30 cents at the US close.
- The Japanese yen eased from 151.20 yen per US dollar to JPY151.58 and was near JPY151.55 at the US close.
Commodities
Global oil prices settled lower Tuesday as investors took a more mixed view toward the loss of Russian refinery capacity after recent Ukrainian attacks.
- The Brent crude price fell by US50 cents or 0.6% to US$86.25 a barrel.
- The US Nymex crude price shed US33 cents or 0.4% to US$81.62 a barrel.
Base metal prices fell on Tuesday.
- Copper futures eased 0.3% as investors awaited signals that demand was recovering in China.
- Aluminium futures slipped 1%.
On Tuesday, the gold futures price rose by US80 cents or less than 0.1% to US$2,177.20 an ounce. Spot gold was trading near US$2,177 an ounce at the US close.
Iron ore futures dipped US39 cents or 0.4% to US$110.28 a tonne on Tuesday as downstream steel consumption in top consumer China disappointed the market.
What’s on?
In Australia, the monthly consumer price index (CPI) indicator is released with engineering construction activity data. Shares of around a dozen ASX-listed REITs trade ex-dividend, alongside IPD Group, Kelly Partners, Myer and Reece.
Chinese industrial profits are due. In the US, mortgage applications data is scheduled.
On the small cap front
The S&P ASX Small Ordinaries ended 0.07% higher yesterday, while the ASX 200 lost 0.41%.
You can read more about the following throughout the day.
- Cobre Ltd (ASX:CBE) has commenced process design scoping for the Ngami Copper Project in Botswana, appointing METS Engineering Group to evaluate the application of in-situ copper recovery and/or alternative extraction methods for beneficiation of the copper-silver mineralisation.
- Novo Resources Corp (TSX:NVO, OTCQX:NSRPF, ASX:NVO). has released updated, high-grade results from the maiden reverse circulation (RC) drill program at Nunnery North, delivering high-grade intercepts of up to 6.12 g/t of gold. Novo has also appointed Karen O’Neill as an independent non-executive director.
- Sovereign Metals Ltd (ASX:SVM, OTC:SVMLF, AIM:SVML) has initiated a follow-up 400-metre spaced drill program at its Kasiya rutile-graphite project in Malawi, focusing on determining the boundaries and extent of mineralisation north of the known mineral resource estimate.
- Evolution Energy Minerals Ltd (ASX:EV1) has completed the final cash compensation payment to Project Affected Persons under the Resettlement Action Plan — an important milestone as the Chilalo Project progresses towards development.