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The morning catch up: mixed signals from Wall Street as ASX set to fall from near-record highs

Published 01/10/2024, 09:26 am
Updated 01/10/2024, 10:00 am
© Reuters The morning catch up: mixed signals from Wall Street as ASX set to fall from near-record highs
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It was a mixed bag on Wall Street overnight, with some modest gains notched on all three major indices.

The Dow Jones edged up 0.04% to 42,330 points, the S&P 500 rose 0.4% to 5,762 points and the Nasdaq added 0.4% to 18,189 points.

No further cuts right now

Federal Reserve chair Jerome Powell said the bank had no immediate plans for rate cuts but hinted at two potential 25 basis point reductions later this year.

Apple shares (NASDAQ:AAPL) jumped 2.3%, leading some broader market gains.

Back home, ASX 200 futures indicate a potential 23-point slide from yesterday’s highs, suggesting a -0.3% move to 8,284 points in early trade as investors await retail and construction data for insights on economic confidence.

Qatar Airways plans to acquire a 25% stake in Virgin Australia (ASX:VAH), pending regulatory approval.

European sharemarkets ended lower on Monday, weighed down by significant losses in auto stocks, which dropped 4%.

Stellantis, the Milan-listed automaker behind the Dodge brand, saw its shares plummet 14.7% after trimming its 2024 annual guidance.

In the UK, Rightmove shares fell 7.7% following Rupert Murdoch's REA Group's decision to abandon its US$8.29 billion takeover attempt, which was rejected for the fourth time by the real estate portal.

The continent-wide FTSEurofirst 300 index fell 1% on Monday and was down 0.6% in September, though it recorded a 1.9% gain for the September quarter.

In London, the UK FTSE 100 index also shed 1% and declined 1.7% over the month of September.

That said, the index posted a 0.9% gain in the third quarter, marking its fifth consecutive quarter of growth.

Currencies and commodities

Global currencies were soft against the greenback in European and US trade. The Euro slipped from US$1.1208 to US$1.1116 and was near US$1.1130 at the US close.

The Aussie dollar flattened slightly from 69.40 US cents to 69.00 US cents and was near 69.10 US cents at the US close. The yen fell from 141.65 yen per US dollar to JPY143.91 and was near JPY143.60 at the US close.

In commodities, gold futures dipped 0.3% to US$2,659.40 an ounce after a recent rally driven by US monetary easing and Middle East tensions. Spot gold traded near US$2,634 an ounce.

Oil prices were little changed, with Brent crude down 0.3% to US$71.77 a barrel and US Nymex crude steady at US$68.17.

Base metals saw declines as the US dollar firmed, with copper slipping 1% after reaching a four-month high, while aluminium dropped 1.7%.

Iron ore futures gained 0.9% to US$93.83 per tonne, bolstered by China’s latest property stimulus measures and continued monetary easing.

Looking ahead, Australian data on home prices, retail sales, and building approvals will be closely monitored.

Key corporate events include the AGM of The Lottery Corp, with Sims and Sigma Healthcare trading ex-dividend.

Market snapshot

  • Australian dollar: +0.4% to 69.33 US cents
  • Nikkei: -4.9% to 37,871 points
  • Hang Seng: +3.9% to 21,426 points
  • Shanghai: +8.1% to 4,005 points
  • 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: flat at $US2,657/ounce
  • Brent crude: +1.6% at $US73.10/barrel
  • Iron ore (Friday): +3.6% to $US102.10/tonne
  • Bitcoin: -1.8% to $US64,646

Source: ABC

What’s happening in small caps?

  • Provaris Energy Ltd (ASX:PV1, OTC:GBBLF) and Yinson Production Offshore Pte Ltd have partnered on the development of storage tank solutions for the bulk storage and marine transportation of carbon dioxide (CO2).
  • Walkabout Resources Ltd (ASX:WKT) has delivered an increase in sales orders in September with larger volume sales orders of graphite concentrate to new end customers in China and India.
  • Lunnon Metals Ltd (ASX:LM8, OTC:LNMLF) is progressing gold exploration in the Foster area, hosted at its Kambalda Gold and Nickel Project (KGNP).
  • Altech Batteries Ltd (ASX:ATC, OTC:ALTHF) says its first CERENERGY® ABS60 battery prototype is online and operating successfully.
  • Galileo Mining Ltd (ASX:GAL, OTC:GLMGF) has received assay results and drilling plans for the company’s 100% owned Norseman project in Western Australia.
  • Read more on Proactive Investors AU

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