The ASX is set to rise in early trading today, with futures pointing to a 0.4% or 31-point lift, potentially reversing the recent downward trend.
US markets managed gains despite slipping oil prices yesterday, led up by tech giants and consumer discretionary stocks.
Microsoft, Amazon, Alphabet and Tesla saw gains ranging between 1.8% and 6% while Devon Energy, Marathon Oil and Chevron declined 5.3%, 5% and 2.3%, respectively, representing a 3.4% slip in general energy stocks.
Despite that, a weakening in Treasury yields and weak job data pointing to further rate pauses pushed growth stocks higher, resulting in a 0.8% uptick for the S&P 500, 0.4% for the Dow and 1.4% for the Nasdaq.
European markets continued their slide for the third day as the energy sector experienced its worst result in almost three months, shedding 2.1% as oil prices dipped by about US$5 a barrel on news Russia may lift its diesel export ban and weaker-than expected US demand.
Retail stocks also hit a near four-month low with a 1.7% loss, overall causing a 0.1% dip in the FTSE 300 and a 0.8% decline in the UK FTSE100.
Commodities, currencies, and bonds
As stated above, oil slid overnight, shedding 5.6%. Brent crude dipped by US$5.11 to US$85.81 a barrel, and US Nymex crude fell US$5.01 to US$84.22 a barrel.
Base metal prices also weakened, with copper futures dropping 0.9% and aluminium sliding 2%.
The US dollar fell against the Euro, Aussie dollar and Japanese Yen during overnight trading:
- The Euro gained from US$1.0452 to US$1.0530
- The Australian dollar strengthened from US63.00 cents to US63.41 cents
- The Japanese Yen rose from 149.26 yen per US dollar to 148.74 yen.
Weak private payroll data drove US Treasury bonds lower, with 10-year bonds falling 7 points to .73%, and the US 2-year Treasury yield dipped 9 points to 5.05%.
What’s happening in small caps?
The S&P/ASX Small Ordinaries closed at 2,629.80 points yesterday, down 0.75% for the day.
Making news this morning, which you can read more about throughout the day with Proactive, are:
- Future Metals NL (ASX:FME, AIM:FME) has doubled its exploration position near Panton, where the company is exploring for copper, nickel and platinum group elements.
- Horizon Minerals Ltd (ASX:HRZ) entered a binding agreement to acquire two greenfield lithium prospects near Bridgetown, less than 20 kilometres from the world-class Greenbushes Lithium Mine, in Western Australia.
- Dynamic Metals Ltd (ASX:DYM) reports the discovery of a lithium anomaly of some 2.8 kilometres at its Pioneer Dome prospect, part of the larger Widgiemooltha Project in the Goldfields Region of Western Australia.
- Accelerate Resources Ltd (ASX:AX8) has hit up to 12 metres at 25.7% manganese in the fourth phase of drilling at the Woodie Woodie North Manganese Project.
- Sipa Resources Ltd (ASX:SRI) reports the confirmation and extension of a nickel-cobalt anomaly at the Skeleton Rocks Project, having also identified pegmatite formations potentially prospective for lithium. Results returned up to 16 metres at 0.38% nickel, 287 parts per million cobalt and 1.73% chrome.