The Australian sharemarket is poised for a robust opening, following a positive day on Wall Street.
ASX futures lifted 1.2%, or 85 points, reaching 6,992 early this morning. US equities rebounded after the Federal Reserve hinted at a potential end to its monetary tightening.
Qualcomm's shares soared by 5.8% after the chip designer projected first-quarter sales and profits exceeding Wall Street estimates. However, Moderna's shares declined by 6.5% after lowering its 2023 COVID-19 vaccine sales forecast.
US jobless claims increased by 5,000 to 217,000 in the past week. Factory orders rose by 2.8% in September. Investors now await the release of the US non-farm payrolls report.
US and UK rate relief won't be felt here
The Bank of England maintained its main interest rate at a 15-year high of 5.25%, with inflation in the UK anticipated to decrease in the coming months.
The bank's Monetary Policy Committee forecast a substantial cooling in the economy, as measured by the consumer price index, which is expected to approach the 2% target rate within the next year. Inflation has stood at 6.7% in the year to September.
In sharp contrast to its counterparts in the US and the UK, the Reserve Bank of Australia's meeting next Tuesday is widely predicted to result in a 0.25% interest rate hike.
Former treasurer Joe Hockey was a dissenting voice, telling Sky News that further rises will have a negative impact on household budgets, the economy and employment rates.
Market movements
We saw the following movements overnight:
- ASX 200: +2.1% to 6,989 points
- Australian dollar: +0.5% to 64.23 US cents
- Dow Jones: +1.7% to 33,839 points
- S&P 500: +1.9% to 4,318 points
- Nasdaq: +1.8% to 13,294 points
- FTSE: +1.4% to 7,447 points
- EuroStoxx: +1.6% to 443 points
- Spot gold: +0.3% to $US1,993/ounce
- Brent crude: +2.6% to $US86.81/barrel
- Iron ore: +2.6 to $US120.90/tonne
- Bitcoin: +0.8% to $US34,873
- US 10-year bond: 7bps to 4.66%
Currencies and commodities
Currency markets saw mixed movements against the US dollar.
Global oil prices rose, with Brent crude up 2.6% to $US86.85 a barrel, amid expectations that Saudi Arabia would confirm an extension of its voluntary oil-output cut.
Base metal prices exhibited mixed trends, with some metals falling by up to 1%, while others rose by up to 0.9%. Gold futures prices rose by 0.3% to $US1,993.50 an ounce.
What’s happening in small caps?
The S&P/ASX Small Ordinaries closed at 2,624.68 yesterday, adding 1.58% on the previous day.
Making news this morning, which you can read more about throughout the day with Proactive are:
- Pantoro Ltd (ASX:PNR, OTC:PNTOF) has welcomed ongoing operational improvements at its 100%-owned Norseman Gold Project, with month-on-month production continuing to increase during October.
- Catalina Resources Ltd (ASX:CTN) has announced the granting of two exploration licences in the ‘exceptionally mineralised terrain’ of the Laverton district in the eastern goldfields of WA.
- Strickland Metals Ltd (ASX:STK) has provided an update on its 100% owned Horse Well prospect at the Yandal Gold Project, where it has successfully completed the first diamond hole at Marwari.
- Lightning Minerals Ltd (ASX:L1M) has completed its initial exploration program at its Dalmas and Hiver Projects in the James Bay region of Quebec, Canada, confirming historical reports of outcropping pegmatitic lithologies at both project areas.