Two of the biggest global markets are closed as we go to press – US trade is closed as the country observes Memorial Day weekend while the UK is enjoying a Spring bank holiday.
No holidays for the ASX, though, which is tilting towards a higher opening today.
ASX futures were up 0.4% to 7,826 points early this morning and new trade figures released today will provide direction for the markets and the economy.
Though the markets were closed, US equity futures pointed to a rosy opening when trade resumes, with futures tied to the Dow Jones lifting 60 points or 0.2%, S&P 500 futures gaining 12.5 points or 0.2%, and Nasdaq 100 contracts jumping 75 points or 0.4% to a record high.
Last week the Dow Jones index rose by 4 points or less than 0.1%, the S&P 500 index gained 0.7%, and the Nasdaq index jumped 185 points or 1.1% to a record closing high.
ECB might cut rates
Europe was open for trade and European share markets closed slightly higher on Monday, with government bond yields easing amid indications of potential interest rate cuts by the European Central Bank (ECB).
Key policymakers at the ECB suggested that the bank has room to cut interest rates as inflation slows, although they hinted at a cautious approach to easing policy.
Governing Council member and French central bank chief Francois Villeroy de Galhau said the bank shouldn’t rule out the notion of consecutive cuts in June and July, despite some officials’ discomfort with the idea.
ECB chief economist Philip Lane indicated that the central bank would need to maintain restrictive policy through 2024, even after anticipated rate cuts next month.
Utilities and carmakers led European stocks higher, gaining between 0.9% and 1.1%.
The continent-wide FTSEurofirst 300 index rose by 0.3%.
The London Stock Exchange was closed but on Friday, the blue-chip FTSE 100 index dipped by 0.3%.
Currencies and commodities
Currencies were mixed against the US dollar in European and North American trade.
The Euro fell from US$1.0865 to US$1.0839 and was near US$1.0855 in late North American trade.
The Australian dollar rose from 66.31 US cents to 66.59 US cents and was near 66.55 US cents in late North American trade. The yen firmed from 156.94 yen per US dollar to JPY156.70 and was near JPY156.90 in late North American trade.
Global oil prices rose over 1% in muted trade on Monday. The market's focus was on an OPEC+ supply meeting on Sunday and US demand at the start of the summer driving season.
The Brent crude price rose US$1 or 1.2% to US$83.12 a barrel. The US Nymex crude price was up 83 US cents or 1.1% to US$78.55 a barrel in after-hours trade.
Base metal prices were mixed in Shanghai trade on Monday. Copper futures fell 0.4%, while aluminium futures edged up 0.1%, buoyed by a price rally in key raw material alumina and fast-growing demand from the new energy sector.
The gold futures price climbed US$18 or 0.8% to US$2,352.50 an ounce in after-hours trade on Monday, as investors assessed diminishing bets of US interest rate cuts ahead of a key US inflation report due later in the week.
Spot gold was trading near US$2,350 an ounce in late North American trade.
Iron ore futures fell 33 US cents or 0.3% to US$118.04 a tonne in Singapore trade on Monday, as traders liquidated long positions to cash-in profits on bets of faltering demand entering seasonally slack steel demand season in China, while shipments increased.
Market snapshot
- Australian dollar: flat to 65.43 US cents.
- US markets: CLOSED.
- UK markets: CLOSED.
- Spot gold: +0.7% to $US2350.97/ounce.
- Brent crude: +1.2% to $US83.10/barrel.
- Iron ore: -1.3% to $US119.25 a tonne.
- Bitcoin: +1.5% to $US56,913/coin.
Source: ABC
What’s happening in small caps?
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