The ASX is expected to fall again today, with ASX 200 futures trading 15 points lower, down -0.22% as of 8:20 am AEST.
Yesterday, the ASX200 finished 56 points (-0.82%) lower at 6,844. The main drags were the Energy (-3%) and Materials (-2.34%) sectors. On the flipside, the Health Care (+1.53%), Consumer Staples (+0.73%) and Utilities (+0.06%) sectors closed higher.
“Yesterday was a carbon copy of last Monday’s session at a macro level with a partial unwind of the safe haven flows that were put on ahead of the weekend, including lower gold and crude oil prices. The falls in the latter weighed directly on the heavyweight ASX200 Energy Sector,” IG Markets analyst Tony Sycamore said.
What happened yesterday?
Here’s what we saw overnight (source Commsec).
US markets
Were mixed on Monday. After being down almost 1% at the beginning of trade, the S&P 500 index pared losses as US 10-year Treasury yields pulled back after hitting the crucial 5% mark earlier in the session.
Microsoft (NASDAQ:MSFT) shares gained 0.8% ahead of its earnings. Shares of Nvidia jumped 3.8% on a report that the chipmaker is working on Arm-based PC chips. Rival Intel (NASDAQ:INTC) slid 3.1%. Pharmacy chain operator Walgreens Boots Alliance (NASDAQ:WBA) added 3.3% after JPMorgan (NYSE:JPM) upgraded it to "overweight". But shares of Chevron (NYSE:CVX) fell by 3.7% after the energy major said it would buy smaller rival Hess in a US$53 billion all-stock deal. Hess shares ended down 1.1%.
- The Dow Jones index fell by 191 points or 0.6%.
- The S&P 500 index dipped 0.2%.
- The Nasdaq index rose 34.5 points or 0.3%, halting a four-day slide.
European markets
Dipped on Monday, hovering near early January lows, as worries about higher-for-longer interest rates by central banks curbed risk sentiment. Mining stocks dropped 1.1%, while retail and travel stocks finished 1.3% and 1.4% higher, respectively. Rate-sensitive real estate stocks fell by 0.6%, hitting their lowest level since 2012.
Italy's FTSE MIB index was among few gainers across the region, up 0.7%, boosted by a 2.6% rise in UniCredit as the lender planned to buy a 9% stake in Alpha Bank. Britain's Vistry dropped 5.8% after the homebuilder lowered its annual profit forecast and said it would cut 200 jobs.
- The continent-wide FTSEurofirst 300 index inched lower by 0.1%.
- In London, the UK FTSE 100 fell by 0.4%. Shares of oil major BP (LON:BP) slid 2.4% as crude prices fell on easing fears about potential supply disruptions in the Middle East.
Currencies
Were stronger against the US dollar in European and US trade.
- The Euro rose from US$1.0570 to US$1.0671 and was near US$1.0665 at the US close.
- The Aussie dollar lifted from US62.89 cents to US63.48 cents and was near US63.35 cents at the US close.
- The Japanese yen firmed from 149.98 yen per US dollar to JPY149.63 and was near JPY149.65 at the US close.
Commodities
Global oil prices dropped more than 2% on Monday as diplomatic efforts in the Middle East intensified in an attempt to contain the conflict between Israel and Hamas, easing investor concerns about potential supply disruptions.
- The Brent crude price fell by US$2.33 or 2.5% to US$89.83 a barrel.
- The US Nymex crude price slid US$2.59 or 2.9% to $85.49 a barrel.
Base metal prices were mixed on Monday.
- The copper futures price rose by 0.9%, after touching an 11-month low, hit by China's property crisis and rising copper stocks.
- The aluminium futures price edged lower by 0.1%.
- The gold futures price fell by US$6.60 or 0.3% to US$1,987.80 an ounce.
- Spot gold was trading near US$1,972 an ounce at the US close.
- Iron ore futures slid US20 cents or 0.2% to US$118.45 a tonne, extending declines as the demand outlook deteriorated in China.
Conference catch ups
Australian Microcap Investment Conference
The 12th Annual Australian Microcap Investment Conference will be held over the next two days at the Sofitel in Melbourne and will give the CEOs of Australia’s leading microcap companies the opportunity to showcase their companies, strategies and people.
In addition to the presentations from the CEOs of emerging companies, there will be two keynote presentations on what to look for when investing in companies in the microcap sector.
Critical Minerals and Electric Vehicle Skills Forum
Australia’s most knowledgeable experts on critical minerals and electric vehicle (EV) skills will meet this week in Canberra to discuss the future of the workforce and the way forward through coordinated action.
The highly anticipated, inaugural Critical Minerals and Electric Vehicle Skills Forum kicks off on October 26.
Organised by the Mining and Automotive Skills Alliance (AUSMASA), the forum will bring together key stakeholders with deep knowledge and understanding of the critical minerals and EV skills landscape.
They will work towards defining skills objectives and strategies that align with existing, transitioning and emerging occupations.
"We are excited to host the Critical Minerals and Electric Vehicle Skills Forum 2023, bringing together some of the great minds and leaders of the automotive and mining industry," AUSMASA CEO Dr Gavin Lind said.
"This event will play a pivotal role in shaping the future of our industries by fostering collaboration and driving innovation in skills development.
“We are delighted with the enthusiasm from industry leaders, policymakers and stakeholders who will join us in Canberra for this important discussion."
As the demand for critical minerals and EVs continues to grow, it is crucial to ensure a skilled workforce capable of meeting the industry's evolving needs.
In 2022, we saw the number of EVs on Australian roads almost double, growing from 44,000 to 83,000, according to research based on sales data released in the Electric Vehicle Council’s yearly recap. Of the 83,000 in circulation, 79% were battery EVs while 21% were plug-in hybrids.
A focus of the forum will be The Australian Critical Minerals Strategy 2023-2030, which sets out the government’s vision to grow Australia’s critical minerals sector. The Department of Industry, Science and Resources will provide an update on the Strategy.
Likewise, the Department of Climate Change, Energy, the Environment and Water will update attendees about The National Electric Vehicle Strategy, which is aimed at increasing the uptake of EVs.
On the small cap front
The S&P/ASX Small Ordinaries (XSO) fell 0.66% yesterday, reflecting the fall of the broader market.
We’ve seen a slow start to newsflow this morning ahead of the start of the Australian Microcap Investment Conference.
You can read about the following and more throughout the day.