The Australian share market is expected to open flat in today's trading session. ASX futures edged up by a marginal 0.1% to 7,385, reflective of a cautious sentiment permeating global markets.
The global market landscape was mixed – in the US, the major indices registered declines following comments from Federal Reserve Governor Christopher Waller, which tempered expectations of near-term rate cuts.
The Dow dropped 0.6%, while there was a 0.4% decrease in the S&P 500 and a 0.2% fall in the tech-focused Nasdaq Composite.
European markets similarly experienced downturns, influenced by cautious statements from European Central Bank (ECB) officials. This contributed to the FTSEurofirst 300 index dipping by 0.2%, and the UK FTSE 100 index shedding 0.5%.
Data to watch for
Key economic data from the US revealed a substantial decrease in the Empire State manufacturing index, stoking concerns about economic stability. With Federal Reserve officials advocating a cautious approach to rate adjustments, US government bond yields saw an uptick.
Market attention is now turning to upcoming economic data releases. In Australia, the focus is on building activity and payroll jobs data.
Globally, China's GDP report is highly anticipated for insights into the economic health of a major global player.
In the US, forthcoming retail sales, industrial production, and other economic reports are expected to provide further direction to the markets.
Currencies and commodities
The Australian dollar experienced a big drop for the first time in a while, falling to 65 US cents.
This was paralleled by a significant rally in the US dollar, the strongest it has been in the past 10 months.
The commodities market experienced varied movements following global economic headwinds.
Global oil prices displayed volatility as investors considered the dual impact of Middle East tensions and a strengthening US dollar, alongside moderated expectations for US interest rate cuts.
US oil prices managed to recover some losses due to an arctic weather front affecting crude production in North Dakota. Brent crude inched up by 14 US cents or 0.2%, reaching US$78.29 a barrel, but US Nymex crude prices fell by 28 US cents or 0.4%, closing at $72.40 a barrel.
Base metal prices showed mixed results, with copper futures rising by 0.7% while aluminium futures declined by 0.3%.
The precious metals market, particularly gold, faced a downward adjustment. The gold futures price decreased by US$21.40 or 1%, landing at US$2,030.20 an ounce. In spot markets, gold was trading around US$2,027 an ounce at the US market close.
Iron ore futures also saw a slight decline, dropping by US47 cents or 0.3% to US$136.75 a tonne.
What’s happening in small caps?
The S&P/ASX Small Ordinaries closed at 2,872.30 yesterday, down -0.16% on the previous day.
Making news this morning, which you can read more about throughout the day with Proactive:
- St George Mining Ltd (ASX:SGQ) has secured a key exploration tenement adjoining its Destiny Project in the Eastern Goldfields of Western Australia.
- Torque Metals Ltd (ASX:TOR) has acquired an extensive package of tenements, creating the Penzance Exploration Camp and activated a drill campaign at the New Dawn Lithium Project to extend the scale of spodumene lithium bodies.
- Aeris Resources Ltd (ASX:AIS, OTC:ARSRF) has released an updated mineral resource estimate for the Currawong and Wilga deposits, at the company’s 100%-owned Stockman Project in Victoria.
- Akora Resources Ltd has appointed experienced mining operations and project developer Jason Whittle as general manager - development, effective from January 15, 2024.
- Resource Mining Corporation Ltd (ASX:RMI) has received assay results from the Liparamba diamond drill program and the Mbinga soil survey, both completed late last year.