Share markets edged higher overnight during a busy earnings season, cautious in the face of oncoming interest rate decisions for several central banks.
Inflation has been cooling across the OECD in recent months, dropping from 7.4% in April to 6.5% in May as inflation declined in all OECD countries except the Netherlands, Norway and the UK.
Euro markets were further stymied by new data pointing to a slowdown in business activity in the UK, France and Germany in July, increasing Europe’s overall recession risk.
Energy (+1.4%) and telecom (+1.2%) stocks gained as media (-0.9%) and tech (-0.8) fell.
An inconclusive election result in Spain caused a dip of -0.3% for the IBEX 35, the FTSEEurofirst 300 gained 0.1% and the UK FTSE 100 increased by 0.2%.
In America, disappointing business activity metrics pointed to a potential end to rate hikes by the Federal Reserve, as the spectre of recession threatens.
Some of the bigger stocks experienced unexpected windfalls:
- Better than expected earnings numbers bumped Chevron’s stock up 2%.
- The successful domestic debut of the Barbie movie gained toymaker and IP owner Mattel 1.8% to its share price.
- AMC Entertainment gained 33% as a court ruling put a stock conversion plan to bed permanently.
- Strong sales in the US and China increased Tesla’s stock 3.5%.
- Finally, Apple gained 0.4% as Bloomberg reported steady iPhone shipments despite ongoing economic uncertainty.
The Dow gained 183.5 points or 0.5% – its 11th straight day of gains, the longest since 2017 – the S&P500 rose 0.4% and the Nasdaq 0.2% or 26 points.
Currency and commodities
The US dollar had mixed success overnight.
The Euro and Aussie softened, near US$1.1065 and US$0.6735 at US close, while the Japanese yen firmed, near JPY141.45 at the end of the day.
Oil prices neared a 3-month high with a 2% bump as crude supply tightened and US demand grew alongside hopes hung on China’s stimulus measures.
Brent rose 2.1% to US$82.74 a barrel while Nymex added 2.2% to US$78.74 a barrel.
Base metals also benefited from renewed hopes of a Chinese economic reawakening, with copper futures up 1% and aluminium futures 0.3% and iron ore rose less than 0.1% to US$112.51 a tonne.
Gold, on the other hand, fell. The precious metal shed 0.2% to US$1,962.20 an ounce.
Looking ahead for the week, consumer confidence data is scheduled to be released, alongside sales and production results for big miners like Newcrest, Pilbara Minerals and 29Metals.
On the small cap front
The ASX All Ords was down 0.32% at yesterday’s close but remains up 4.45% for the month.
- Nexus Minerals Ltd (ASX:NXM) has identified several lithium-caesium-tantalum pegmatites at its Merrimac LCT Project in its first field campaign on the tenure.
- Buru Energy Ltd (ASX:BRU, OTC:BRNGF) has signed a natural hydrogen research agreement with the CSIRO, opening the door to a potential pivot in its oil and gas activities.
- Castillo Copper Ltd (ASX:CCZ, LSE:CCZ)’s geology team has produced a JORC mineral resource estimate for the Cangai Copper Mine of 4.6 million tonnes at 2.45% copper, for 114,000 tonnes of copper.
- Immuron Ltd (NASDAQ:IMRN, ASX:IMC) enrolled the first patients in a clinical trial evaluating its traveller’s diarrhea medication Travelan® in partnership with the US Military.
- Gold Hydrogen Ltd (ASX:GHY) received experimental results from the CSIRO indicating the presence of hydrogen in multiple locations at the Ramsay Project in South Australia.
You can read more about these and other announcements on our website throughout the day.