The local market is expected to open higher this morning following gains across the US markets overnight. The ASX SPI 200 Futures are up 76 points (0.97%) to 7,888.
RBA Governor Michele Bullock is now speaking to the Australian House of Representatives Standing Committee on Economics. She has told the committee the RBA "doesn't expect to be able to cut (interest) rates near term".
National Australia Bank has reported statutory net profit of $1.9 billion for the three months ended 30 June, along with cash earnings of $1.75 billion. For the period, NAB reported a 1% decline in revenue compared to the first half quarterly average.
NAB chief executive Andrew Irvine said the bank’s customers were facing “persistent inflationary pressures,” and while many had proven resilient “not unexpectedly we have seen asset quality deteriorate further in 3Q24”.
Earnings reports are scheduled today for 3P Learning, ASX, Amcor, Charter Hall Retail REIT, Domain and GQG Partners.
Fortescue CEO Andrew Forrest has criticised Opposition leader Peter Dutton’s nuclear ambitions, pushing for renewable energy investment over nuclear power.
Forrest said, "Let's congratulate Peter for acknowledging that we've got to switch off the oil and gas and diesel. I'm glad he's got there. But, second, nuclear is a different but very old story. It's a bit like carbon sequestration. It's just the next story waiting for the next idiot to come along. I'm not seeing any investors lining up to invest in nuclear because it's an old, expensive story, and I'm seeing investors everywhere wanting to invest in renewable energy. It's great for a soundbite, great for politics, but is it great economically? No, mate.”
Overseas markets
US sharemarkets jumped on Thursday after readings on US retail spending and unemployment benefits, allayed fears of an imminent recession in the world's largest economy.
The Dow Jones index rose by 555 points or 1.4%. The S&P 500 index gained 1.6% and the Nasdaq index added 402 points or 2.3%, both notching six-day winning streaks.
- Retail bellwether Walmart added 6.6% after raising its annual profit forecast for the second time this year as Americans flocked to its stores for inexpensive essentials.
- Cisco Systems rose 6.8% after it forecast better-than-expected first-quarter revenue and said it was cutting 7% of its global workforce.
- Nike climbed 5.1% as billionaire investor William Ackman built new stakes in the sportswear company.
- Ulta Beauty jumped 11.2% after Warren Buffett's Berkshire Hathaway acquired a stake in the cosmetics store chain.
European sharemarkets closed higher on Thursday, with the technology sector leading gains, up 2.6%. Britain's economy recorded a solid quarter of economic growth. Gross domestic product (GDP) grew 0.6% in the June quarter (survey: +0.6%).
- The continent-wide FTSEurofirst 300 index climbed 1.2%.
- In London, the UK FTSE 100 index gained 0.8%.
Currencies
Currencies were mixed against the US dollar in European and US trade.
- The Euro fell from US$1.1015 to US$1.0950 and was near US$1.0970 at the US close.
- The Aussie dollar rose from US65.96 cents to US66.34 cents and was near US66.10 cents at the US close.
- The Japanese yen slid from 147.10 yen per US dollar to session lows near JPY149.30 at the US close.
Commodities
Global oil prices gained more than US$1 a barrel on Thursday after US economic data allayed fears of recession in the world's biggest economy, although the rally was limited by concerns of slower global demand. The Brent crude price rose US$1.28 or 1.6% to US$81.04 a barrel. The US Nymex crude price added US$1.18 or 1.5% to US$78.16 a barrel.
Base metal prices advanced on Thursday.
- Copper futures jumped 2.8%, supported by a break above key technical levels and supply risks related to a strike at BHP's Escondida mine in Chile.
- Aluminium futures gained 1.2%.
The gold futures price rose US$12.70 or 0.5% to US$2,492.40 an ounce. Spot gold was trading near US$2,455 an ounce at the US close.
Iron ore futures fell US65 cents or 0.7% to US$98.55 a tonne on Thursday, hitting their lowest level in more than 14 months, as persistently weak property data in China exacerbated pessimism over the demand outlook.
What’s happening in small caps?
- Novo Resources Corp (TSX:NVO, OTCQX:NSRPF, ASX:NVO). advises that a Determination Wide Aboriginal Heritage Protection Agreement has been signed between Novo and the Nyamal Aboriginal Corporation, streamlining the interactions between Novo and the Nyamal People.
- Immuron Ltd (NASDAQ:IMRN, ASX:IMC) announces new US Department of Defense Research Award for Naval Medical Research Command and Walter Reed Army Institute of Research to advance Travelan®.
- Perseus Mining Ltd (ASX:PRU, TSX:PRU, OTC:PMNXF) advises that Ms Amanda Weir will be joining Perseus’s senior leadership team in the role of Chief Operating Officer (COO).
- Syntara Ltd (ASX:SNT) has appointed Tim Luscombe as Chief Financial Officer (CFO), replacing the retiring David McGarvey.
- Buru Energy Ltd (ASX:BRU, OTC:BRNGF) reports David Maxwell will take over as chair effective immediately, following the retirement of Eric Streitberg.