The ASX will open dead flat today, complete unchanged from yesterday’s 0.3% gains when the opening bell rings at 10 am AEST today, according to ASX Futures.
US markets have continued their record-setting rally overnight, although much of the momentum appears to have petered out. The optimism was buoyed by jobless claim data, which fell by 9,000 to 218,000 in the past week.
What happened overnight? (Source:Commsec)
US and European markets
Walt Disney shook off the US Supreme Court decision to quash its lawsuit against Florida Governor DeSantis and efforts by “activist investors” with higher-than-expected profit, gaining 11.5% on the back of a new investment in gaming, plans for an ESPN streaming service in 2025, and a US$3 billion share repurchase plan coupled with a 50% dividend increase.
Luxury label Ralph Lauren also gained on high third-quarter revenue, gaining 16.8%, and UK tech company Arm jumped 47.9% on strong quarterly sales and profit, as its customers design more valuable chips for artificial intelligence, garnering higher royalties.
Finally, Paypal shed 11.2% on a forecast of flat growth in adjusted profit.
The Dow gained 0.1% or 49 points and the S&P500 0.1% to close on new record highs. The Nasdaq also added 0.2% or 37 points.
In Europe, markets continued to suffer. Big cap healthcare stocks were dragged 1.9% by Astra Zeneca’s 6.4% dip as the UK drug manufacturer failed to meet quarterly profit targets.
It wasn’t all bad – Dutch payments company Ayden gained 21.3% and French luxury group Kering lifted 4.9% as both companies weathered earnings season effectively.
The FTSE300 fell less than 0.1%. The UK FTSE100 lost 0.4%.
Bond yields, currencies, and commodities
US bond yields rose overnight as jobless claims dipped, pointing to a strong labour market and a further wait before the cash rate is reduced.
Richmond Federal Reserve president Thomas Barkin echoed that sentiment, highlighting that policymakers can afford to wait before reducing rates.
US$25 billion 30-year notes were sold at a yield of 4.36%, while the 10-year yield rose to 4.16% and the 2-year yield to 4.46%.
The US dollar strengthened overnight.
The Euro fell from US$1.0741 to close near US$1.0775, the Aussie dropped from 65.24 US cents to 64.90 US cents and the Japanese yen weakened from JPY149.46 to JPY149.30.
Oil prices lifted once again overnight, adding 3% as Israel’s Prime Minister rejected a ceasefire with Gaza.
Brent rose 3.1% to US$81.63 a barrel and US Nymex 3.2% to US$76.22 a barrel.
Base metals were a mixed bag – copper futures fell 0.9%, pushed down by a strong US dollar and China’s economic slowdown, while aluminium futures gained 0.1%.
Iron ore rose 1.6% to US$129.07 a tonne as the Chinese government signalled it would offer the struggling property sector some support, in turn offering some hope the steel demand from China would increase.
Gold futures decreased by 0.2% to US$2,047.90 an ounce, pressured by a robust US dollar and higher bond yields, while spot gold was near US$2,033 an ounce at the close.
On the small cap front
The Small Ordinaries index gained 0.36% yesterday, closely mirroring the ASX200’s progress.
You can read about the following and more throughout the day on our website.
- Kin Mining NL (ASX:KIN) has completed the sale of selected Western Australian gold deposits, receiving cash and liquid assets worth $80 million in return.
- Novo Resources Corp (TSX:NVO, OTCQX:NSRPF, ASX:NVO) Ltd has made strong progress across its Western Australian gold portfolio, drilling at the Belltopper and Becher projects and forming a battery metals joint venture with SQM (NYSE:SQM) Lithium.
- Lightning Minerals Ltd (ASX:L1M) has completed an aircore drilling campaign at the Dundas Project, with assays expected in the next 6-8 weeks.
- Latrobe Magnesium Ltd (ASX:LMG, OTC:LTRBF) has kicked off a share purchase plan to raise $3 million to fund the first stage of its magnesium oxide demonstration plant.
- Nexus Minerals Ltd (ASX:NXM) has begun a 2,000-metre diamond drilling program at the Bethanga Copper-Gold Project, targeting a potential porphyry system.